Asked by Shayan Patel on May 06, 2024
Verified
__________ best explains a ratio of sales/average net fixed assets that exceeds the industry average.
A) The firm expanded plant and equipment in the past few years
B) The firm makes less efficient use of assets than competing firms
C) The firm has a substantial amount of old plant and equipment
D) The firm uses straight-line depreciation
Sales
The transactions of selling goods or services within a specified period, often measured to assess company performance.
Average Net Fixed Assets
The average value of a company's fixed assets, like property, plant, and equipment, net of depreciation, over a specified period.
Industry Average
A metric that represents the average performance or benchmark for a particular industry or sector.
- Understand the impact of inventory management on a firm's financial performance.
Verified Answer
Learning Objectives
- Understand the impact of inventory management on a firm's financial performance.
Related questions
Which Circumstance Would Cause Average Inventory Holdings to Decrease,other Things ...
The Managers of Venice Company Receive Performance Bonuses Based on ...
Inventory Represents Money Sitting Idly on a Shelf
The Time Period That Begins When an Item Is at ...
Holding Costs Are the Expenses You Incur in Either Ordering ...