__________ Best Explains a Ratio of Sales/average Net Fixed Assets

Multiple Choice

__________ 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 If the firm has more old plant and equipment than competing firms, the denominator is deflated, thus producing a higher than average ratio.