A firm can increase its asset turnover performance by ________.
A) lowering rental costs through use of low-cost warehouse-type locations
B) reducing labor expense through centralized operations
C) increasing liabilities to lower the asset base
D) stocking inventory that is fast-moving

Question

Quizplus · Accepted Answer

Stocking inventory that is fast-moving allows the firm to sell its products faster, which in turn helps to increase the frequency of asset turnover. This will increase the firm's asset turnover performance.

A Firm Can Increase Its Asset Turnover Performance by ________