Johnson Company Has a High Inventory Turnover That Has Increased

question 1

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 Company:

• 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.

---

Definitions:

Stage 3

Depending on the context, this could refer to the third phase in a developmental, psychological, or medical progression system.

Suprachiasmatic Nucleus

A tiny region in the brain's hypothalamus responsible for controlling circadian rhythms by regulating the body's internal clock.

Biological Clock

An internal mechanism that regulates physiological and behavioral rhythms in organisms in a roughly 24-hour cycle.

Retina

The light-sensitive layer at the back of the eye that contains cells which convert light into electrical signals sent to the brain.