Puffin Turnovers,Inc

question 95

Multiple Choice

Puffin Turnovers,Inc.'s fixed asset turnover was 0.9 while Muffin Tops,Inc.'s fixed asset turnover was 0.6.Which of the following statements about Puffin compared with Muffin is correct?

• A)Puffin generated more sales per dollar of fixed assets.
• B)Puffin has greater depreciation expense.
• C)Puffin has more fixed assets.
• D)Puffin has greater sales.

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Definitions:

Multiple Products

Refers to an array of different items or goods that a business manufactures or sells.

Lot Sizes

The quantity of items that are processed, produced, or purchased at one time.

Cycle Inventory

Inventory that is held or maintained in the supply chain to facilitate the regular, ongoing production and distribution of goods.

Flow Time

The total time it takes for a product to move through a production process, from start to finish.