Which of the following statements about inventory is NOT true?
A) Inventory sitting on the shop floor costs money.
B) The best criterion for gauging the effectiveness of manufacturing operations is inventory.
C) A company's worth can be measured by the size of its inventory.
D) Large inventories hide operations management problems.
E) None of these.

Question

Quizplus · Accepted Answer

Inventory size alone does not accurately measure a company's worth, as it does not account for other factors like liabilities, cash flow, or market conditions.

Which of the Following Statements About Inventory Is NOT True