Which ONE of the Following Statements About Working Capital Tradeoff

Which ONE of the following statements about working capital tradeoff is true?

A) Financial managers need to balance shortage costs against carrying costs to find an optimal strategy.
B) If carrying costs are larger than shortage costs, then the firm will maximize value by adopting a more restrictive strategy.
C) If shortage costs dominate carrying costs, the firm will need to move toward a more flexible policy.
D) All of the above