To exploit its tangible assets more effectively requires that a firm:
A)Economizes on these assets by changing its depreciation policy
B)Economizes on underutilized assets and redeploys assets into more profitable uses
C)Expands sales in order to ensure they are fully deployed
D)Leases assets rather than owning them in order to boost return on capital employed

Question

Quizplus · Accepted Answer

The most effective way to exploit tangible assets is to identify underutilized assets and redeploy them into more profitable uses. This can help maximize returns on assets, improving overall profitability. Changing depreciation policies (A) may provide short-term benefits, but it is not a long-term solution. Expanding sales (C) can help fully utilize assets, but it may not be possible or practical in all cases. Leasing assets (D) may be beneficial in some situations, but it does not necessarily improve return on capital employed.

To Exploit Its Tangible Assets More Effectively Requires That a Firm