__________ Best Explains a Ratio of Sales/average Net Fixed Assets

question 44

Multiple Choice

__________ best explains a ratio of sales/average net fixed assets that exceeds the industry average.

• A)The firm expanded plant and equipment in the past few years
• B)The firm makes less efficient use of assets than competing firms
• C)The firm has a substantial amount of old plant and equipment
• D)The firm uses straight-line depreciation If the firm has more old plant and equipment than competing firms, the denominator is deflated, thus producing a higher than average ratio.

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