If average net fixed assets decrease,then the fixed asset turnover ratio will increase,assuming nothing else changes.

Name: If average net fixed assets decrease,then the fixed asset turnover ratio will increase,assuming nothing else changes.
Brand: Quizplus
Rating: 4.9 (37 reviews)

Question

Quizplus · Accepted Answer

This is because the fixed asset turnover ratio is calculated as net sales divided by average net fixed assets. If average net fixed assets decrease, the denominator will decrease, resulting in a higher ratio.

If Average Net Fixed Assets Decrease,then the Fixed Asset Turnover