The safest way to value a firm's productive assets for strategic purposes is to use the historic cost book value of its assets.

Question

Quizplus · Accepted Answer

The historic cost book value of assets reflects the original cost of acquiring them and does not consider the changes in the market value or the improvements made to them over time. As a result, it may not accurately reflect the current value of the assets or their potential contribution to the firm's future performance. Thus, for strategic purposes, it may be better to use market value or replacement value methods to value a firm's productive assets.

The Safest Way to Value a Firm's Productive Assets for Strategic