The fixed asset turnover ratio
A)measures the relation between sales and the investment in fixed assets such as property, plant, and equipment.
B)measures the amount of sales generated from a particular level of investments in fixed assets.
C)is calculated by dividing sales by the average fixed assets for the period.
D)all of the above.
E)none of the above.

Question

Quizplus · Accepted Answer

The fixed asset turnover ratio measures the efficiency of a company's use of its fixed assets to generate sales revenue. It is calculated by dividing sales by the average fixed assets for the period. Therefore, all of the above options are correct.

The Fixed Asset Turnover Ratio