Smaller fixed asset turnover ratio is associated with firms

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Reference no: EM131205069

Which of the following statements is true?

1. A smaller fixed asset turnover ratio is associated with firms that are more labor intensive and require smaller fixed asset investments.

2. The fixed asset ratio cannot be compared across time for an individual company.

3. The fixed asset ratio is not useful for comparing different companies.

4. A larger fixed asset turnover ratio is associated with firms that are more labor intensive and require smaller fixed asset investments.

Reference no: EM131205069

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