All things being equal,if average net fixed assets decrease,then the fixed asset turnover ratio will increase.
BT: Comprehension

Question

Quizplus · Accepted Answer

The formula for fixed asset turnover ratio is net sales divided by average net fixed assets. If the average net fixed assets decrease while net sales remain constant, the fixed asset turnover ratio will increase. This is because the company is generating more revenue per dollar of fixed assets.

All Things Being Equal,if Average Net Fixed Assets Decrease,then the Fixed