Dee's Has a Fixed Asset Turnover Rate of 1

question 48

Multiple Choice

Dee's has a fixed asset turnover rate of 1.12 and a total asset turnover rate of 0.91.Sam's has a fixed asset turnover rate of 1.15 and a total asset turnover rate of 0.88.Both companies have similar operations.Based on this information,Dee's must be doing which one of the following?

• A)utilizing its fixed assets more efficiently than Sam's
• B)utilizing its total assets more efficiently than Sam's
• C)generating $1 in sales for every $1.12 in net fixed assets
• D)generating $1.12 in net income for every $1 in net fixed assets
• E)maintaining the same level of current assets as Sam's

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Definitions:

Approaches

Approaches refer to methods or strategies adopted in order to tackle problems, conduct research, or understand theories across various disciplines.

Individualistic Culture

Culture that places great emphasis on individual needs and accomplishments.

Admiration

A feeling of wonder, pleasure, or approval toward someone or something that is considered remarkable, valuable, or worthy of respect.

Cooperation

The process of groups or individuals working together towards a common goal, often leading to benefits for all parties involved.