In exploring how to create more value from tangible assets, two questions must be addressed:
A)Can a firm save money on these assets by changing the depreciation policy, and how can it delay replacing them?
B)How can a firm reduce cost/unit of output on underutilized assets, and/or how can it redeploy them more profitably?
C)How can a firm beat its rivals regarding these assets, and how can it build a better reputation in regards to its external environment?
D)How can a firm acquire more efficient assets from external markets, or how can it build these assets in-house?

Question

Quizplus · Accepted Answer

By reducing the cost/unit of output on underutilized assets, a firm can create more value from tangible assets. This can be achieved through methods such as improving maintenance processes or exploring alternative uses for the assets. Redeploying the assets more profitably can also help increase their value. The other options (A, C, D) may also be important considerations, but reducing costs and improving utilization are the most direct ways to create more value from existing tangible assets.

In Exploring How to Create More Value from Tangible Assets