Question: PLease help me with the below True or False Question 1 1 . 1 ABC analysis categorizes inventory items based on their contribution to overall
PLease help me with the below True or False
Question
ABC analysis categorizes inventory items based on their contribution to overall revenue. True or False
In ABC analysis, C items require the most management attention.True or False
Stockout costs arise when a company runs out of inventory and loses sales as a result. True or False
Days Sales of Inventory DSI provides an estimate of how long inventory is held before being sold. True or False
The carrying cost of inventory is usually higher than the ordering cost in most businesses.True or False
The inventory accuracy rate indicates how closely the recorded inventory matches the actual inventory. True or False
In EOQ calculations, the order quantity should always be increased to take advantage of quantity discounts.True or False
A items in ABC analysis typically account for the largest percentage of inventory value but the smallest percentage of inventory volume.True or False
Inventory holding costs include storage, insurance, and depreciation of inventory.True or False
The EOQ model helps minimize the total costs associated with ordering and holding inventory. True or False
Ordering costs only include the price paid to suppliers for inventory.True or False
Gross margin is an effective measure of inventory performance. True or False
The total cost of inventory management is solely determined by holding costs. True or False
The reorder point is calculated by considering lead time and daily demand. True or False
Quantity discounts are irrelevant when calculating the EOQ. True or False
Target inventory levels are static and do not change over time. True or False
Inventory turnover ratio measures how many times inventory is sold and replaced within a specific period. True or False
Cycle counting is an alternative method for physical inventory counting.True or False
A higher target inventory level is typically set when demand is unpredictable.True or False
Target inventory systems aim to completely eliminate stockouts. True or False
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