Which of the Following Statements Is True

question 64

Multiple Choice

Which of the following statements is true?

• A) A larger fixed asset turnover ratio is associated with firms that are more labor intensive and require smaller fixed asset investments.
• B) The fixed asset ratio cannot be compared across time for an individual company.
• C) A smaller fixed asset turnover ratio is associated with firms that are more labor intensive and require smaller fixed asset investments.
• D) The fixed asset ratio is not useful for comparing different companies.

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