Fixed asset turnover ratio is computed as total sales revenue divided by ________.
A) average net fixed assets
B) ending net fixed assets
C) average gross fixed assets
D) ending gross fixed assets

Question

Quizplus · Accepted Answer

The fixed asset turnover ratio is calculated by dividing total sales revenue by average net fixed assets, which reflects the efficiency of a company in using its fixed assets to generate sales.

Fixed Asset Turnover Ratio Is Computed as Total Sales Revenue