The fixed asset turnover ratio measures a company's ability to use its property,plant,and equipment to generate revenues.

Name: The fixed asset turnover ratio measures a company's ability to use its property,plant,and equipment to generate revenues.
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Quizplus · Accepted Answer

The statement is true. The fixed asset turnover ratio is calculated by dividing net sales by average fixed assets, and it indicates how efficiently a company is using its fixed assets to generate revenue.

The Fixed Asset Turnover Ratio Measures a Company's Ability to Use