A low fixed asset turnover ratio often indicates that
A) The firm is efficiently using its current assets.
B) The firm is efficiently using its total assets.
C) The firm is keeping expenses low.
D) Marketing efforts are ineffective.

Question

Quizplus · Accepted Answer

A low fixed asset turnover ratio suggests that the firm is not generating sufficient sales relative to its fixed assets, which could imply ineffective marketing efforts leading to lower sales.

A Low Fixed Asset Turnover Ratio Often Indicates That