It Is Appropriate to Use the Fixed Assets Turnover Ratio

question 89

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:

Division Of Labor

The allocation of different tasks and responsibilities to different individuals or groups in a society, organization, or production process to increase efficiency.

Horticulture

The cultivation of crops in food gardens, carried out with simple hand tools such as digging sticks and hoes.

Agriculture

Intensive crop cultivation, employing plows, fertilizers, and/or irrigation.

Environment In Adaptation

The process whereby organisms adjust to changes in their surroundings or habitat to enhance survival and reproduction.