Which of the following statements about inventory is not true?
A) Inventory sitting on the shop floor costs money.
B) A company's worth can be measured by the size of its inventory.
C) The best criterion for gauging the effectiveness of manufacturing operations is inventory.
D) Large inventories hide operations management problems.
E) None of these choices.

Question

Quizplus · Accepted Answer

A company's worth cannot be accurately measured by the size of its inventory alone. Inventory is simply a part of a company's assets but other factors such as profitability, market share, and customer satisfaction also contribute to a company's overall worth.

Which of the Following Statements About Inventory Is Not True