If a Company Must Decrease Its Selling Price While All

question 200

Multiple Choice

If a company must decrease its selling price while all of the company's expenses remain constant, what will happen to return on investment (ROI) ?

• A)ROI will decrease.
• B)ROI will increase.
• C)ROI will not be affected.
• D)We cannot determine the effect from the information provided.

---

Definitions:

Investing Activities

Part of the cash flow statement that shows the cash spent on and generated from investments in assets, securities, and acquisitions.

Equipment Acquisition

The process of obtaining physical assets for use in production or operations, often through purchase or lease.

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, representing how much of the asset's value has been used up.