The higher the fixed asset turnover,the
A)more efficiently a company is using its fixed assets in generating sales
B)more efficiently a company is using its intangible assets in generating sales
C)less efficiently a company is using its fixed assets in generating sales
D)more efficiently a company is using its current assets in generating sales

Question

Quizplus · Accepted Answer

Fixed asset turnover is a ratio that measures how efficiently a company is using its fixed assets to generate sales. A higher fixed asset turnover indicates that a company is generating more sales per dollar invested in fixed assets, which means they are using their fixed assets more efficiently. Therefore, choice A is the correct option.

The Higher the Fixed Asset Turnover,the