Which of the following statements is false?
A) A cash out is less likely to happen to a firm with high carrying costs than one with high shortage costs.
B) Carrying costs increase with greater investments in current assets.
C) Order costs increase with lesser investments in current assets.
D) With a flexible short-term financial policy, shortage costs will be minimized.
E) The costs involved with greater investments in current assets are zero if the increase is funded with short-term debt.
Correct Answer:
Verified
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A) Increase
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