Johnson Company Has a High Inventory Turnover That Has Increased

question 106

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.

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Definitions:

External Cause

Any factor or event originating outside an individual that significantly affects behaviors, outcomes, or circumstances.

Internal Cause

Factors within a person, such as traits, beliefs, or desires, that lead to their behavior or actions.

Literature Class

An academic course focusing on the study, analysis, and interpretation of written works, such as poems, novels, and plays.

Internal Factors

Elements within an organization or individual that influence behavior, decision-making, or performance, such as personality, motivation, or corporate culture.