Which Financial Indicator Measures the Ratio of Sales to Fixed

question 62

Multiple Choice

Which financial indicator measures the ratio of sales to fixed assets?

• A) days of inventory
• B) asset turnover
• C) average collection period
• D) fixed asset turnover
• E) inventory turnover

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Definitions:

Job Ranking

A method of evaluating jobs relative to each other within an organization based on their overall importance or complexity.

Precise Measure

A highly accurate and specific method of evaluation or quantification, allowing for little to no variation or error.

Labour Market Conditions

Refers to the current status of employment, unemployment, job creation, and wages in a particular region or economy.

Wage Rates

The amount of money paid to an employee per unit of time, such as an hour or a week, for work performed.