A just$-$in$-$time inventory system is designed to stretch accounts payable as long as possible.

Group of answer choices

True

False

Flag question: Question $2$

Question $21$ pts

The goals of inventory management are $(1)$ to ensure that the inventories needed to sustain operations are available, but $(2)$ to hold the costs of ordering and carrying inventories to the lowest possible level.

Group of answer choices

True

False

Flag question: Question $3$

Question $31$ pts

Firms hold cash balances in order to complete transactions $($both routine and precautionary$)$ that are necessary in business operations and as compensation to banks for providing loans and services.

Group of answer choices

True

False

Flag question: Question $4$

Question $41$ pts

The firm has a low incidence of production schedule disruptions with inefficient inventory management.

Group of answer choices

True

False

Flag question: Question $5$

Question $51\mathrm{.}5$ pts

The easier a firm's access to borrowed funds the higher its precautionary balances will be$,$ in order to protect against sudden increases in interest rates.

Group of answer choices

True

False

Flag question: Question $6$

Question $61\mathrm{.}5$ pts

The EOQ model provides information about optimal order quantities, maximum and minimum inventory levels, and inventory cost minimization.

Group of answer choices

True

False

Flag question: Question $7$

Question $71\mathrm{.}5$ pts

If the inventory carrying cost percentage increases, the EOQ will increase as well.

Group of answer choices

True

False

Flag question: Question $8$

Question $81\mathrm{.}5$ pts

If I order less than the EOQ my total inventory costs will decrease.

Group of answer choices

True

False