Which option is not considered a type of tangible benefit?

The correct answer is that higher customer satisfaction is not considered a type of tangible benefit. Tangible benefits refer to measurable and concrete gains that can be quantified in financial terms, such as money saved or earned as a result of a change in business practices or processes.

Increased revenue directly reflects financial performance and can be measured in terms of sales figures. Similarly, reduced working capital indicates a lower amount of funds tied up in current assets, improving cash flow and financial efficiency. Lower fixed asset investment also signifies measurable savings since it lowers the requirement for physical resources that need financial investment.

Higher customer satisfaction, on the other hand, is often seen as an intangible benefit. While it may ultimately lead to increased loyalty or sales, customer satisfaction itself is a subjective measure and does not have a direct, quantifiable financial impact that can be easily calculated or reported in financial statements.