Which of the Following Statements Is False Regarding Inventory Management

Multiple Choice

Which of the following statements is false regarding inventory management?

A) In general, a firm wants to produce a low level of sales per dollar of inventory.
B) In general, a firm wants to produce a high level of sales per dollar of inventory.
C) A high inventory turnover ratio or a low days' sales in inventory is generally a sign of good management.
D) Extremely high levels for inventory turnover ratio and low levels for days' sales in inventory ratio may actually be a sign of bad firm or production management.