The correct option is (a) sales; average book value of fixed assets.
The fixed asset turnover ratio is computed as sales divided by average book value of fixed assets.
The fixed asset turnover ratio demonstrates the effectiveness of a company's current fixed assets in driving sales. A greater ratio suggests that management is making better use of its fixed assets. No information can be gleaned from a high FAT ratio about a company's capacity to produce reliable earnings or cash flows.
The ratio of sales to the value of fixed assets is known as fixed-asset turnover. It shows how effectively the company is generating sales by utilizing its fixed assets.
A greater ratio is typically preferred since it suggests that the business is effective at producing sales or revenues from its asset base. A lower ratio suggests that a business is not utilizing its resources effectively and may be experiencing internal issues.
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Brennan Manufacturing monitors the number of customer returns for each product model to attempt to track when the organization is producing a large number of defective products. This is an example of: Feedback control.
A I’m not doing this but pretty sure A
Answer:
12%
Explanation:
Annual net income:
= Increase in annual revenue - Increase in annual costs
= $220,000 - $160,000
= $60,000
Average investment:
= (Initial investment + Salvage value at the end) ÷ 2
= (980,000 + 20,000) ÷ 2
= $500,000
Annual rate of return:
= (Annual net income ÷ Average investment) × 100
= ($60,000 ÷ $500,000) × 100
= 12%
<span>production coefficients.
factors of production.
production technologies.
production aggregates.</span>
