Chapter 14, Problem 2CP

Which of the following best explains a ratio of “net sales to average net fixed assets” that exceeds the industry average? $\left(\text{LO 14}-3\right)$
a. The firm added to its plant and equipment in the past few Years.
b. The firm makes less efficient use of its assets than other firms.
c. The firm has a lot of old plant and equipment.
d. The firm uses straight-line depreciation.