True or false? a. Inventory levels tend to rise proportionately more than sales. b. Carrying costs include

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True or false?
a. Inventory levels tend to rise proportionately more than sales.
b. Carrying costs include the cost of the capital tied up in inventory.
c. Optimal inventory levels involve a trade-off between carrying costs and ordering costs.
d. As order size increases, carrying costs and optimal inventory levels decline.
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Fundamentals of Corporate Finance

ISBN: 978-1259722615

9th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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