Only the final answer without explain Which of the following circumstances will cause sales to fixed assets to beOA. A capital-intensive industryOB. The use of units-of-production depreciation methodOC. The use of the double declining depreciation methodOD. A labor-intensive industryabriprmally low?

Sales to Fixed Asset is calculated by dividing sales by average fixed assets. It indicates how well…

Answered: Which of the following circumstances…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Only the final answer without explain

Which of the following circumstances will cause sales to fixed assets to be
OA. A capital-intensive industry
OB. The use of units-of-production depreciation method
OC. The use of the double declining depreciation method
OD. A labor-intensive industry
abriprmally low?

Expert Solution

Introduction

Sales to Fixed Asset is calculated by dividing sales by average fixed assets. It indicates how well a company uses its assets to generate revenue.
If the ration is higher, it suggests the company is efficiently utilizes its fixed assets to generate revenue and vice versa.

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