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Which statements is false regarding inventory management

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Reference no: EM132665803

Problem 1: Which of the following statements is false regarding inventory management?

Option 1: In general, a firm wants to produce a low level of sales per dollar of inventory.

Option 2: A high inventory turnover ratio or a low days' sales in inventory is generally a sign of good management.

Option 3: 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.

Option 4: In general, a firm wants to produce a high level of sales per dollar of inventory.

Problem 2: Compute the future value in year 10 of a $1,000 deposit in year 1, and another $1,500 deposit at the end of year 4 using an 8 percent interest rate.

Option 1: $5,397.31

Option 2: $4,379.31

Option 3: $4,500.00

Option 4: $3,120.73

Problem 3: Which of the following will increase the present value of an annuity?

Option 1: The number of periods decreases.

Option 2: The amortization schedule decreases.

Option 3: The effective rate is calculated over fewer years.

Option 4: The interest rate decreases.

Reference no: EM132665803

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