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Asset turnover

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Asset turnover

  • This topic has 1 reply, 2 voices, and was last updated 2 months ago by P2-D2.
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  • May 21, 2022 at 7:40 pm #656143
    maximus07
    • Topics: 375
    • Replies: 380
    • ☆☆☆☆

    I studied that if selling price decrease so demand increases and Asset turnover increases. Can you explain how?

    May 30, 2022 at 4:05 pm #656854
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 6158
    • ☆☆☆☆☆

    Hi,

    Presumably it will be because we are using the same asset base (so no change to this figure) but generating more revenue (an increase to the sale figure), hence the increase in the ratio.

    Thanks

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