Which of the following is not true about investment bases associated with return on investment (ROI)?
A)Involves decreasing idle cash.
B)Involves managing credit judiciously.
C)Involves determining proper inventory levels.
D)Managers spend carefully on long-term assets.
E)Managers never have benefits when they reduce long-term assets.

Question

Quizplus · Accepted Answer

The statement "Managers never have benefits when they reduce long-term assets" is not true. Reduction in long-term assets can lead to cost savings and increased efficiency, which can ultimately result in higher ROI.

Which of the Following Is Not True About Investment Bases