Answer:
D) is less than the value of the marginal product of labor.
Explanation:
As an economic principle, firms will maximize their profits when the marginal revenue they receive for selling a good or service equals the marginal costs of producing and selling that good or service.
The marginal product of labor equals the change in total output gained from adding one extra unit of labor. It basically measures how much value is added by each additional unit of labor. So a firm will hire additional workers as long as the revenue generated from their work is higher than their wage.
Bob, the owner of Orthopedic Supply, just discovered that his trusted friend Ruth, his accountant for over 30 years, has been mishandling the company books and stealing from the company bank account. Bob must decide whether to ignore his friend's actions and avoid bad publicity for Orthopedic Supply, or to have Ruth arested for embezzlement. Bob is facing:________ a) a whistle-blower. b) a moral courage decision c) an issue of corporate governance. d) a social audit e) an ethical dilemma.
Answer:
E) an ethical dilemma.
Explanation:
An ethical dilemma is a situation where a person must face a decision where both alternatives are really bad choices. No option will provide a positive resolution to the current situation, but the person must decide between one of them.
In this case, if Bob goes to the police, his friend will be arrested but that will generate bad publicity for his business. If Bob decides not to go to the police, Ruth will continue to steal money form him. It's like being between a rock and a hard place, whatever your decision, you are still going to be hurt.
When assessing a foreign market, Unisys Corporation undertakes a general, noneconomic review of conditions affecting the business, including safety and leisure time. This demonstrates a focus on the_________.
Answer:
Cultural, sociological, and political climate
Explanation:
When accessing the foreign markets the Unisys must keep in mind the various economic and the economic factors that affect the conditioning of the business and includes. The safety and the leisure time of the business and are shown in terms of the cultural and the sociological and the political environment.Your favorite photo can now be printed on your favorite credit card. You can design your own dresses online and have them sent to you in a few days. You can even create your own orthotics to fit inside your shoes. These are examples of the trend toward:___________.1. continuous processes.2. intermittent processes.3. mass customization.4. lean manufacturing.
Answer:
3. Mass customization
Explanation:
Mass customization -
It refers to the strategy of marketing , where the goods and services are modified according to the taste of the consumer , is referred to as mass customization .
A huge number of people are targeted and the their likes and dislikes are considered in order to manufacture the goods and services .
It is also known as made - to - order and built - to - order .
Hence , from the given scenario of the question ,
The correct option is Mass customization .
Mezzinzi Bank offers loans to companies in the form of bonds. The companies who apply for these loans can repay the amount over a prolonged period of time. Which of the following financing options is being offered by Mezzinzi Bank in the given scenario?
A. A revolving credit agreement
B. Long-term debt
C. Commercial Paper
D. Trade credit
Option B
Long term debt financing options is being offered by Mezzinzi Bank in the given scenario
Explanation:Long-term debt usually transfers to a company's loans and other responsibilities that will not fit due within one year of the balance sheet period. Investors spend in long-term debt for the advantages of interest payments and estimate time to maturity as a liquidity peril.
Bonds are commonly distributed to the general public and obligatory beyond several years. The term to maturity for LTD can change wherever from 12 months to 30+ years and the kinds of debt can carry bonds, contracts, bank loans, debentures, etc.
Assume Sarah has owned an EE bond for 3 years. The fixed rate of interest is 8% and the current value of the bond is $4500. If Sarah were to cash in the bond tomorrow, how much interest will she lose (approximately) as a penalty
Final answer:
If Sarah cashes in her EE bond early, she would lose the last three months of interest as a penalty. At an 8% annual interest rate on a bond value of $4500, this would amount to approximately $90 of lost interest.
Explanation:
Assuming Sarah has owned an EE bond with an 8% fixed rate of interest for 3 years and its current value is $4500, we need to determine the penalty she would incur if she cashes it in early. EE Bonds have a penalty for cashing them in before they are 5 years old, typically losing the last 3 months of interest. To calculate the lost interest as a penalty, we can use the annual interest rate to find the quarterly interest. First, find the annual interest by applying the interest rate to the current value of the bond: $4500 × 0.08 = $360. Since the interest is compounded annually, quarter of this would be $360 / 4 = $90. This is the amount of interest Sarah would lose if she cashes in the bond tomorrow.
A company owns land that is used as a softball diamond and recreational park for hosting employee picnics. Once a year the company also allows a non-profit organization to hold a softball game on these premises. During this year's softball game, the director of the non-profit was injured when a softball hit him in the head. He asked the company that owns the land to pay for his trip to the emergency room. What is the company's unendorsed Commercial General Liability policy?
Answer:
Commercial General Liability Policy will not provide compensation for injured caused by softball to the Director
Explanation:
Commercial General Liability (CGL) is an insurance policy that provide protection and assurance to a business organisation against any legal liability arising from the use of its property, while in the premises of the insured, from use of product.
The Commercial General Liability provides the coverage below:
-Liability arising from Bodily injury and property damage
-Liability arising from Personal and advertising injury and Medical payments
In this director scenario, the CGL have in its provision and condition to provide compensation for the injury caused as a result of their actions (e.g. building collapse, left broken bottles, bad product which directly affected third party) but the director was injured by his own accompanied property and have no relation whatsoever with the Land company. Hence no indemnity or compensation will be provided under the Commercial General Liability Policy.
The New Product Development Process begins with the _____________, fill in the blank, stage and culminates with the _____________, fill in the blank, phase.
The new product development begins with the idea generation.
Explanation:
The five basic stages of new product development (NPD) are as follows,
Idea generation: This is the first and foremost process of NPD. It is systematic search for new ideas from internal and external sources.Idea screening: Filtering the best ideas from all the selected ones. Concept development: Developing the reliable concepts with the help of SWOT analysis.Marketing strategy development: Description of the target market, outline of the product’s planned price and planned long-term salesBusiness analysis: Review of the sales, R&D, operations and efficiency ratio measure.Product development: Developing a successful prototypeTest marketing: The proposed marketing program and the developed product is released in the realistic market.Commercialisation: Introducing the developed product finally and permanently into market.Twenty years ago, Balzania put in place regulations requiring operators of surface mines to pay for the reclamation of mined-out land. Since then, reclamation technology has not improved. Yet, the average reclamation cost for a surface coal mine being reclaimed today is only four dollars per ton of coal that the mine produced, less than half what it cost to reclaim surface mines in the years immediately after the regulations took effect.
Which of the following, if true, most helps to account for the drop in reclamation costs described?
A. Even after Balzania began requiring surface mine operators to pay reclamation costs, coal mines in Balzania continued to be less expensive to operate than coal mines in almost any other country.
B. In the twenty years since the regulations took effect, the use of coal as a fuel has declined from the level it was at in the previous twenty years.
C. Mine operators have generally ceased surface mining in the mountainous areas of Balzania because reclamation costs per ton of coal produced are particularly high for mines in such areas.
D. Even after Balzania began requiring surface mine operators to pay reclamation costs, surface mines continued to produce coal at a lower total cost than underground mines.
E. As compared to twenty years ago, a greater percentage of the coal mined in Balzania today comes from surface mines
Answer:
A. Even after Balzania began requiring surface mine operators to pay reclamation costs, coal mines in Balzania continued to be less expensive to operate than coal mines in almost any other country.
Explanation:
What is true about the information provided in the scenario in relation to accounting for the drop in reclamation costs described is that: Even after Balzania began requiring surface mine operators to pay reclamation costs, coal mines in Balzania continued to be less expensive to operate than coal mines in almost any other country.
It was stated in the scenario that, ''Twenty years ago, Balzania put in place regulations requiring operators of surface mines to pay for the reclamation of mined-out land, Yet, the average reclamation cost for a surface coal mine being reclaimed today is only four dollars per ton of coal that the mine produced, less than half what it cost to reclaim surface mines in the years immediately after the regulations took effect''
Hence, the cost in Balzania is lower than the costs elsewhere which implies that the products will be heaper in Balzania due to lower operating costs
Answer:
C) Mine operators have generally ceased surface mining in the mountainous areas of Balzania because reclamation costs per ton of coal produced are particularly high for mines in such areas.
Explanation:
Reclamation costs refer to the costs of turning previously mined-out land into productive land. The cost of land reclamation has dropped significantly in Balzania and only two options can account for this lower cost:
Reclamation technology improved and therefore operating costs have decreased. But this option is false, as stated by the question. Areas where reclamation costs are high have not been mined anymore. Since this is the only option left, we must assume it is true.Suppose income increases by 25 percent and, as a result, the quantity of a particular brand of automobile demanded (holding the price for this particular automobile constant) decreasesdecreases by 37 percent. The income elasticity of demand for this brand of car is_____. This particular brand of automobile is a(n) _____ good. In another example, suppose market research shows that a particular brand of truck is a normal good and a luxury. If so, then the income elasticity of demand for this truck is:______.
A. Less than 1 but greater than 0.
B. Negative.
C. Greater than 1.
D. Positive.
E. Zero.
Answer:
-1.48; Inferior good
Option (D) is correct.
Explanation:
Given that,
Income increases by 25 percent and quantity of a particular brand of automobile demanded decreases by 37 percent.
Therefore, the income elasticity of demand for this brand of car is as follows:
= Percentage change in quantity demanded ÷ Percentage change in Income
= (- 37) ÷ 25
= -1.48
Negative income elasticity of demand indicates that this particular brand of car is an inferior good.
There is a positive relationship between the income of the consumer and the quantity demanded for normal goods. This means that as the income of the consumer increases then as a result the quantity demanded for normal goods also increases and as the income of the consumer decreases then as a result the quantity demanded for normal goods also decreases.
The income elasticity of demand measures the change in quantity demanded in response to changes in income. This relates to two types of products: inferior goods, where demand decreases with increased income, and luxury goods, where demand increases more than proportionally with increased income.
Explanation:The income elasticity of demand measures how much the quantity demanded of a commodity responds to changes in consumers' income. In the scenario you presented, when income increased by 25%, the number of cars demanded decreased by 37%. So the income elasticity here is negative, specifically -37/25 = -1.48. This car brand is an
Inferior good
, as the demand decreases when income increases.
On the other hand, a truck that is a normal good and a luxury would have an Income elasticity of demand greater than 1 (option C). This is because the demand increases more than proportionally with an increase in income.
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Suppose you could quantify the amount of satisfaction you receive from consuming ice cream in money terms. You might say, "I expect to get $3 worth of satisfaction from this ice cream cone." According to traditional economic theory, if the price of this ice cream cone were $3.05, would you buy one?
Answer:
No, since the marginal cost of consuming the ice cream cone is greater than the marginal benefit.
Explanation:
Marginal utility is the benefit that a consumer derives from consuming an extra unit of a product. To maximise satisfaction consumers tend to go for products that will give them high satisfaction at a low cost.
In the given scenario the cost of a unit of ice cream cone is $3.05, and the satisfaction or benefit is $3. The cost is higher than satisfaction gained. A consumer will not buy the ice cream under these conditions. They will rather look for an alternative that will give high satisfaction at low cost.
Suppose you are in charge of sales at a pharmaceutical company, and your firm has a new drug that causes bald men to grow hair. Assume that the company wants to earn as much revenue as possible from this drug. If the elasticity of demand for your company's product at the current price is 1.4, would you advise the company to raise the price, lower the price, or keep the price the same?
Answer: Lower the price
Explanation:
The price elasticity of demand measures the sensitivity of the quantity demanded of a good. Also note that when Price elasticity of demand exceeds 1, the demand is elastic. And an elastic demand is when price or other factors have a huge effect on the amount consumers want to purchase . It states that the quantity purchased has an inverse relationship with price. When prices rise, people will buy less. The elasticity of demand tells you how much the amount purchased decreases when the price increases.
Colin wants to set up an aquarium.. He already has a tank, but needs to purchase fish, filters, and plants. If the cost of the fish is $84.79, the filters usually cost $60.45 but Colin finds them on sale for $44.75, and the cost of the plants is $18.66, determine how much of Colin’s $488.85 savings will be used to set up his aquarium
Answer:
$148.2 is used up
Explanation:
84.79 + 44.75 + 18.66 = 148.2
Answer:
d. $148.20
Explanation:
Which of the following is not an operational accountability measure for a government? Economic cost of providing services. Net income. Assessment whether a government raised sufficient revenues each period to cover the cost of providing services. Assessment whether services are being provided economically and efficiently.
Answer:
Net income.
Explanation:
Operational accountability is a concept that considers if sufficient resources are available to cover cost of providing a service for a long period of time. Measurement is done by using the economic resource flows measurement focus.
It focuses more on the long term and not just on resource availability for a period.
Net income is not an effective measure of operational accountability of a government as it does not provide information on if sufficient resources are provided to cover service delivery.
The other options provided a measure of operational accountability.
-Economic cost of providing services.
-Assessment whether a government raised sufficient revenues each period to cover the cost of providing services.
-Assessment whether services are being provided economically and efficiently.
Job rotation: a. increases the total number of tasks. b. involves moving employees from one job to another. c. refers to employees having control over their jobs. d. is a form of job specialization.
Answer:
b. involves moving employees from one job to another.
Explanation:
Job rotation is defined as the process where an employee bis moved around to through various job roles during his employment in a business. This is usually done to make the employee more flexible and interested in working with the company. It also reduces the monotony of doing only one thing, so reduces stress.
Job rotation bresults in employee learning, employer learning, and employee motivation.
For example a logistics officer may spend a certain time attending to customers in the reception area. It helps the employee understand and appreciate various job roles. So he is more motivated to drive overall business goals.
While most accounts suggest that Henrietta never met George Gey or knew about HeLa, Laure Aurelian says that Gey recounted meeting with Henrietta before her death. Do you find this story believable?
Answer:
no
Explanation:
Based on the information provided within the question it as well as information in the novel "The Immortal Life of Henrietta Lacks" it can be said that this story is difficult to find believable due to the fact that George Gey did not have a friendly relationships with patients he just used them for his immortal cell research.
Which of the following is a generic term that denotes the broad range of possibilities of product attributes? A. Offering B. Value propositions C. Benefits D. Core products E. Goods
Answer:
A. Offering
Explanation:
Offering is the generic term used to denote the broad range of possibilities of product attributes. It is one of the methods through which the seller offers its product to the consumers through its different features as per the consumers requirements keeping in mind the market requirements.
__________ is a type of segmentation in which the company strategically focuses on targeting a smaller market with particular needs that the company can serve well.
Answer:
niche marketing
Explanation:
Niche marketing -
It refers to as one of the subset of the market , which focus on certain products , is referred to as niche marketing . It is also known as small market segment .
It tries to focus on some specific needs of the market , the production and quality of the goods and services .
It tries to support smaller companies in order to live with the highly competitive market .
Hence , from the given scenario of the question ,
The correct answer is niche marketing .
An example of ________ would be when overweight people file suit against manufacturers, distributors, or sellers of food products, charging these parties with responsibility for their obesity
An example of frivolous lawsuits would be when overweight people file suit against manufacturers, distributors or sellers of food products, charging these parties with responsibility for their obesity.
Explanation:
This does not have serious purpose or viewThe mistake or the complaint cannot be provedThere is a little possibility of winning but most of the cases people fail to winThere is no legal merit given to thisThere are so many examples, where people complaint without any valid proof or with the things where they cannot bring proofThe complaints are not even factsSo, frivolous lawsuits are associated with complaints which cannot be proved.
An externality is internalized if a. the person(s) or group that generated the externality incorporate into their own private cost-benefit calculations the external benefits (in the case of a positive externality) or the external costs (in the case of a negative externality) that third parties bear. b. people are made aware of it and realize that social benefits are less than private benefits (in the case of a positive externality) and that social costs are less than private costs (in the case of a negative externality). c. the person(s) or group that generated the externality do not incorporate into their own private cost-benefit calculations the external benefits (in the case of a positive externality) or the external costs (in the case of a negative externality) that third parties bear. d. b and c e. none of the above
An externality is internalized (a) if the person(s) or group that generated the externality incorporate into their own private cost-benefit calculations the external benefits (in the case of a positive externality) or the external costs (in the case of a negative externality) that third parties bear.
Explanation:
Internalizing the externality means transferring the burden or the cost of a negative externality (like pollution or traffic congestion) to inside(i.e external to internal).
Internalization of externality can be done through taxes, property rights, tolls, and government subsidies.The only way of correcting an externalities is to "internalize" the third party cost involved but this market -driven approach is not feasible if the true monetary values cannot be determined.
An externality is internalized if the person(s) or group that generated the externality incorporate into their own private cost-benefit calculations the external benefits (in the case of a positive externality) or the external costs (in the case of a negative externality) that third parties bear.
If a manufacturing firm ends its year with a total revenue equal to its production costs and opportunity costs combined, then which of the following terms best describes its economic profit for the year?
Zero
Answer:
ZERO ECONOMIC PROFIT
Explanation:
If a manufacturing firm ends its year with a total revenue equal to its production costs and opportunity costs combined, then the term best describes its economic profit for the year is Zero economic profit because by definition Economic profit is the difference between total monetary revenue and total costs, but total costs include both explicit and implicit costs.
Hence if at the end of the year the total revenue equals production and opportunity costs, then there is NO ECONOMIC PROFIT
Answer:
The Economic Profit of the Company will be zero, where Revenue equals its production and opportunity costs
Explanation:
The concept of Profit can be viewed from 2 perspectives, the Accounting profit and the economic profit.
The Accounting Profit is the basic recognition of a Business success which is measured as Revenue being well over its Costs. Costs in this regard are considered explicit Costs because they are easily measurable and attributable to the operations of the Business
Economists believe however there is a subtle measure of costs often overlooked by Businesses; the Implict Costs or Opportunity Costs. Economics suggests that in addition to the explicit costs above the Revenue should cover the Implicit Cost of a business.
The implicit costs will include benefits foregone to operate the way a business is being set up to operate e.g the savings foregone by not operating from the Owners Garage or the Income foregone by retiring to set up the firm by the owner.
The economic profit = Revenue - Implicit Costs - Explicit Costs
TONI&GUY is a global hairdressing and education business headquartered in England. It has recently opened salons in Mongolia, adding to its numerous salons worldwide. TONI&GUY allows foreign businesspeople to use its name, logo, methods of operation, advertising, and products. In exchange, TONI&GUY receives a financial commitment and an agreement to conduct business in accordance with its standard of operations. TONI&GUY is engaging in_____.
Answer:
Franchising
Explanation:
There are various ways to expand a business, one of them is franchising. Tony and guy is a hairdressing company that operates in multiple countries. They use franchising as a way to expand; they allow frogmen and local people to use their name, logo and methods of operations. Just by an agreement tony and guy give their franchises to people across the globe. So, tony and guy is engaging in franchising.
After recently having repairs made to a refrigerator, Tammy has found that it has a new problem. Tammy has an opportunity to buy another refrigerator for $900 instead of repairing the current one. What is a sunk cost of this scenario?
Answer: The cost of the previous repairs.
Explanation:
Tammy has an opportunity to buy another refrigerator for $900 instead of repairing the current one. The cost of the previous repairs is the sunk cost.
What is a sunk cost?An investment that has already been made but cannot be recouped is referred to as a sunk cost, also known as a retrospective cost. Opportunity costs, in contrast, represent the profits lost from resources that were invested somewhere else.
Sunk costs in company include things like marketing, research, installing new software or equipment, paying for workers and benefits, or paying for facilities.
According to economists, sunk costs should not, in theory, be considered while making decisions in the future. But in reality, sunk costs can and frequently do have a big impact on future choices.
This is largely due to the psychological difficulty of letting go of previously used time, effort, or money, even when the results did not live up to expectations.
The sunk cost fallacy occurs because our emotions frequently lead us to stray from sensible conclusions, according to the Decision Lab, a behavioral-science based research organization focusing on improving decision-making.
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When units are moved from one processing department to the next, the cost associated with those units must also be moved from one WIP account to the next. What are these costs called?
These costs called as Transferred costs.
Explanation:The costs that are accumulated during the time of upstream production process in a firm refers to Transferred costs. These are associated with the goods that are transferred to the next department of a business from one department. With this product there will be a continuation of the production process.
These are semi finished goods that are transferred for the purpose of continuing the production process. When these units are moved form the processing department to the next department, these transferred cost will be transferred from one work in process account to the next account.
NTL is the largest cable company in the United Kingdom. The company has recently declared bankruptcy and needs to engage in restructuring in order to give it more flexibility and allow it to raise capital. Since it has identified the need for strategic change, what would be the organization's next step in this strategy-making process?
a. finding the optimal strategic solution
b. brainstorming
c. conducting focus groups
d. assessing the need for strategic change
e. conducting a situation analysis
Answer: Conducting a situation analysis.
Explanation:
A situation analysis is a method managers use to evaluate the position of things in their organization, where available resources are taken note of. NTL cable company has to conduct a situation analysis to know the resources the company possess and plan the way forward with what's available.
Scenario: You are an American Red Cross Disaster Program Specialist in charge of teams trained to help in sheltering displaced persons. You have been notified by your office to be prepared to deploy to conduct shelter operations. Your supervisor has asked you to come to the office to begin organizing volunteers and get prepared to set up shelters, if tasked. You check in before you begin. What NIMS Management Characteristic are you supporting?A. Modular Organization.B. Incident Action Planning.C. Establishment and Transfer of Command.D. Accountability.
Answer:
D. Accountability
Explanation:
Following the NIMS management characteristics, as an American red cross my activity of checking in follows accountability. Accountability involves check in and out, planning of incident action, command unity, personal responsibility, span of control and resource tracking. Check in and check out involves responders reporting to assigned work appropriately.
Planning incident actions follows the the responders should follow stated plan.
Personal responsibility talks about the actions of the responder.
In command unity, all workers/responders are required to report to one boss or supervisor.
Span of control and resource tracking deals with the number of supervisors or leaders and the allocation and utilization of resources respectively.
The NIMS Management Characteristic being supported is Establishment and Transfer of Command.
Explanation:The NIMS Management Characteristic that you are supporting in this scenario is Establishment and Transfer of Command. This is because you have been notified by your office to be prepared to deploy and set up shelters, indicating a transfer of command from your supervisor. The command structure is being established and you are being tasked with organizing volunteers and preparing for shelter operations.
In incident management, it's crucial to have a clear system in place for establishing command when an incident occurs, as well as for transferring command as needed during the course of the response. This ensures that there is a designated individual or team responsible for overall management and coordination of resources and activities.
Having a structured process for the establishment and transfer of command helps ensure effective communication, coordination, and decision-making throughout the incident response. It helps maintain order, clarity, and accountability, which are critical elements in managing any type of incident, whether it's related to emergencies, disasters, or other incidents.
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Neot was just promoted, and what she's most excited about is that she now gets a corner office and a designated spot in the employee parking lot. According to Maslow's hierarchy of needs, which level of needs does this best reflect
Answer:
Esteem needs.
Explanation:
An individual's esteem need according to Maslow is the need for respect, self esteem, status, and self confidence. Everyone wants to be valued and accepted by people, and this is esteem need. Esteem is an internal need but it is influenced by external environment when people validate and approve of a person.
North has just been promoted and along with this status change comes a corner office and a designated parking spot. This shows she is accepted and valued by the organisation.
If a firm's variable cost per unit estimate used in its base case analysis is $50 per unit and they anticipate the upper and lower bounds to be /- 10%, What is the "worst case" for variable cost per unit
Answer:
$55
Explanation:
Variable cost of production is the portion of production cost that varies with production amount. In addition to fixed cost it gives total cost of production.
Since there is a +-10% boundary for variable cost. The worst case in terms of high variable cost is 100%+10%= 110%
So worst price = 1.10* 50= $55
On the other hand best case scenario is 100-10= 90%
Best price= 0.9* 50= $45
Why would the US government sell government securities to private individuals and organizations?
A to reduce the money supply and raise interest rates
B to increase the money supply and lower interest rates
C to reduce the money supply and raise the inflation rate
D to increase the money supply and lower the inflation rate
is a structured approach used by decision makers to develop a sourcing strategy for a product or service, based on the value potential and the relative complexity or risk represented by a sourcing opportunity.
Portfolio analysis is a structured approach used by decision makers to develop a sourcing strategy for a product or service, based on the value potential and the relative complexity or risk represented by a sourcing opportunity.
Explanation:Portfolio analysis is an analysis of the elements incorporated in a mix of products to progress decisions that are demanded to develop overall return. Portfolio Analysis carried at frequent intervals benefits the investor to originate innovations in the portfolio allocation and modify them according to the developing market and several factors.
The analysis also assists in customary resource/asset allocation to various elements in the portfolio. It accommodates to estimate the company’s attractiveness. It aids to evaluate the competing strength of the company regarding market share, contribution margin.
It is appropriate to use the fixed assets turnover ratio to appraise firms' effectiveness in managing their fixed assets if and only all the firms being compared have the same proportion of fixed assets to total assets.a) trueb) false
Answer:
False
Explanation:
fixed assets turnover ratio = net sales / average fixed assets
This ration measures how effectively a company uses its fixed assets to generate sales. If a company's fixed assets turnover ratio is higher than the industry average, it means that it is using its assets more efficiently to generate more sales or it is working at an over capacity, and it needs to add more fixed assets.