Johnson Company Has a High Inventory Turnover That Has Increased

Multiple Choice

Johnson Company has a high inventory turnover that has increased over the last year. All of the following statements are true regarding this situation except Johnson County:

A) is minimizing funds tied up in inventory.
B) is increasing the amount of inventory on hand relative to sales.
C) may be losing sales due to inventory shortages.
D) has a cost of goods sold that is increasing relative to its average inventory.