True or False

1. The cash cycle increases as the inventory and receivables periods get longer. IT decreases if the company can defer payment of payables and thereby lengthen the payables period. TRUE OR FALSE
2. The greater the credit risk of the buyer, the longer the credit period is likely to be. TRUE OR FALSE
3. The economic order quantity (EOQ) is the restocking quantity that minimizes the total inventory costs. TRUE OR FALSE
4. Activities that decrease cash are called "uses of cash."
5. The duties of a Credit Manager include the setting of production schedules and materials requirement related to inventory. TRUE OR FALSE
6. When evaluating credit worthiness, firms often utilize the "three C of credit." TRUE OR FALSE
7. Carrying costs decrease with inventory levels, whereas shortage costs increase with inventory levels.
8. For a manufacturer, inventory is normally classified into one of three categories: raw material, work-in-process, and finished goods. TRUE OR FALSE