High inventory turnover


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. may be losing sales due to inventory shortages.

B. has a cost of goods sold that is increasing relative to its average inventory.

C. is minimizing funds tied up in inventory.

D. is increasing the amount of inventory on hand relative to sales.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: High inventory turnover
Reference No:- TGS078988

Expected delivery within 24 Hours