Final answer:
Cash, accounts receivables, and inventory do not always move in the same direction with level production, as production, sales, and payment receipt cycles can differ.
Step-by-step explanation:
The answer to the question is False. In a scenario with level production, cash, accounts receivables, and inventory do not all necessarily move in the same direction monthly. Under level production, the amount produced is kept constant each month. Therefore, inventory levels may increase if production exceeds sales, leading to an inventory buildup. Meanwhile, cash might decrease as the company continues to incur production costs. Accounts receivables may fluctuate based on the timing of customer payments and sales volume. The changes in these components depend on the sales cycle, collection practices, and production costs, which do not always align to move in the same direction.