If a Company's Fixed Asset Turnover Ratio Decreased from 2010

question 26

Multiple Choice

If a company's fixed asset turnover ratio decreased from 2010 to 2011, which of the following conclusions can be made?

• A) The company was more efficient during 2011 in using its fixed assets to produce profits
• B) The company produced less sales in 2011 for each dollar invested in fixed assets compare to 2010.
• C) The company was less profitable in 2010.
• D) The company over invested in fixed assets in 2010.

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Definitions:

Ambiguity

The quality of being open to more than one interpretation; lack of clarity or certainty in meaning.

Output

The amount of something produced by a person, machine, or industry.

Data

Information collected for reference, analysis, or computation, often structured in a way that makes it accessible and useful.

Intended Message

The particular details or feelings a person intends to express to others via communication.