True or False: In inventory models, high holding costs tend to favor high inventory levels?

FALSE: The inverse is true

INVENTORY TURNOVER = Cost of Goods Sold / Average Inventory Cost

As such high holding costs will favor lower inventory levels

and low holding costs will favor high inventory levels.

False. High holding costs will not favor inventory level to climb up

False ,

I agree with Mr.Abdou warshan         

Answer FALSE ????????????????????????

False

Holding (or carrying) costs. This broad category includes the costs for storage facilities, handling, insurance, pilferage, breakage, obsolescence, depreciation, taxes, and the opportunity cost of capital. Obviously, high holding costs tend to favor low inventory levels and frequent replenishment.