It Is Appropriate to Use the Fixed Assets Turnover Ratio

question 99

True/False

It is appropriate to use the fixed assets turnover ratio to appraise firms' effectiveness in managing their fixed assets if and only if all the firms being compared have the same proportion of fixed assets to total assets.

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Definitions:

Deviate

To depart from an established course or norms.

Sanctioned

refers to actions that have been officially approved or authorized.

Figurehead

A person who holds a titular position of importance but lacks real power or authority.

Maypole

Traditionally, a pole decorated with streamers that are held by individuals as they dance around it during celebrations, often associated with May Day.