Which of the Following Is Not True? to Increase Value

question 38

Multiple Choice

Which of the following is not true? To increase value, an organization must

• A)decrease price or cost while holding perceived benefits constant.
• B)hold perceived benefits constant while increasing price or cost.
• C)increase perceived benefits while holding price or cost constant.
• D)increase perceived benefits while reducing price or cost.

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Definitions:

December 31

December 31 is traditionally the final day of the Gregorian calendar year, and it is often the fiscal year-end for organizations operating on a calendar year basis.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in an equal and consistent manner.

Book Value

The net value of a company's assets found on the balance sheet, calculated as total assets minus intangible assets (patents, copyrights) and liabilities.

Residual Value

The estimated amount that an asset is worth at the end of its useful life.