Which of the Following Could Affect(s) the Fixed Asset Turnover

question 134

Multiple Choice

Which of the following could affect(s) the fixed asset turnover ratio?

• A)Firms often invest in fixed assets several periods before these assets generate sales from products manufactured in their plants or sold in their stores.
• B)A low or decreasing rate of fixed asset turnover may indicate expanding firms preparing for future growth.
• C)Firms anticipating a decline in product sales could cut back expenditures on fixed assets and increase the fixed asset turnover ratio.
• D)All of the above.
• E)None of the above.

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