Write "𝗧𝗿𝘂𝗲"if t he statement is correct, writte "𝗙𝗮𝗹𝘀𝗲" if the statement is incorrect.

Question

1. The rationale behind ABC inventory management approach is that a small portion of inventory in terms of quantity might represent at a large portion in the terms of inventory value.
2. An optimal credit policy is the one that maximize the total costs of managing cash, namely carrying cost and opportunity cost

Answer 1

1. 𝗧𝗿𝘂𝗲
2. 𝗙𝗮𝗹𝘀𝗲