The fixed asset turnover is the:
A)number of sales dollars generated by each dollar of total assets.
B)rate at which inventories are being rotated.
C)number of dollars in notes payable generated by each dollar in fixed assets.
D)number of sales dollars generated by each dollar of fixed assets.

Question

Quizplus · Accepted Answer

Fixed asset turnover ratio = Net Sales ÷ Average net fixed assets.
This ratio indicates number of dollars of sales generated for each dollar of average fixed assets.

The Fixed Asset Turnover Is The