Which of the Following Statements Is False

Multiple Choice

Which of the following statements is false?

A) Optimal inventory levels involve a trade-off between carrying costs and order costs.
B) Carrying costs include the cost of storing goods as well as the cost of capital tied up in inventory.
C) Optimal inventory levels are lower when storage or interest costs are high and are higher when restocking costs are high.
D) Inventory levels do not rise in direct proportion to sales. As sales increase, the optimal inventory level rises, but more than proportionately.