Which One of the Following Statements Is Correct Concerning Inventory

Multiple Choice

Which one of the following statements is correct concerning inventory costs?

A) Lost sales are costs related to safety reserves.
B) A loss due to a theft is a shortage cost.
C) Carrying costs decrease as inventory levels rise.
D) The goal of inventory management is the minimization of storage costs.
E) The cost to set up a production run is a carrying cost.