What should a company NOT do to enhance its cost efficiency?

The choice highlighting the importance of avoiding upgrades in technology without a return on investment (ROI) plan is correct because making such investments without a clear understanding of their potential financial impact can lead to wasteful spending and resource misallocation. Companies need to strategically evaluate technological upgrades to ensure that they align with their financial goals and operational efficiency.

When a company invests in technology, it is crucial to assess whether these investments will yield sufficient returns to justify the costs. Upgrading technology can often involve significant expenses not just for the acquisition of new systems or equipment, but also in terms of training employees, potential downtime, and the ongoing costs associated with new technologies. Without an ROI plan, the company risks taking on expenses that may not contribute positively to cost efficiency or overall profitability, potentially negating any intended benefits.

On the other hand, identifying hidden cost-reducing opportunities, investing in employee training, and increasing production capacity can all contribute positively to enhancing a company's cost efficiency. Identifying hidden cost-reducing opportunities allows the company to find inefficiencies in operations that can be streamlined. Investing in employee training can lead to improved productivity and reduced errors, directly contributing to lower costs. Increasing production capacity, when strategically executed, can lead to economies of scale, resulting in lower