The fixed asset turnover is calculated as .
A)net income divided by average fixed assets
B)net sales divided by cost of the assets
C)average fixed assets divided by net sales
D)net sales divided by average fixed assets

Question

Quizplus · Accepted Answer

The fixed asset turnover ratio is calculated by dividing net sales by average fixed assets. This ratio measures the efficiency with which a company is using its fixed assets to generate sales.

The Fixed Asset Turnover Is Calculated as