The more efficiently a company uses its fixed assets the lower the fixed asset turnover ratio will be.

Name: The more efficiently a company uses its fixed assets the lower the fixed asset turnover ratio will be.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The fixed asset turnover ratio measures how efficiently a company uses its fixed assets to generate revenue. A higher fixed asset turnover ratio indicates that the company is using its fixed assets more efficiently. Therefore, the statement is false.

The More Efficiently a Company Uses Its Fixed Assets the Lower