Usually the growth in fixed assets should _______.

Question

Quizplus · Accepted Answer

The growth in fixed assets should demonstrate a consistent relationship with the growth in revenues, accounting for some startup period. As a company's revenue grows, it may need to invest in additional fixed assets such as property, plant, and equipment to support operations. However, there may be a startup period where fixed asset purchases are made in anticipation of future revenue growth, leading to an inconsistent relationship between fixed asset growth and revenue growth during this time.

Usually the Growth in Fixed Assets Should _______