Under the Accounting Standards, Which Alternative Measure of Value Is

question 49

Multiple Choice

Under the accounting standards, which alternative measure of value is not permitted to be used for valuing assets?

• A) fair value
• B) historical cost
• C) net realisable value
• D) None of the above, i.e. all are permitted methods in some circumstances

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Definitions:

Monthly

Referring to something that occurs, is measured, or is paid every month.

Dollar Sales

Total revenue generated from the sale of goods or services, expressed in dollars.

Mixed Cost

A cost that contains both variable and fixed cost elements.

High-low Method

A technique in managerial accounting used to estimate the variable and fixed cost components of a cost formula, analyzing the highest and lowest levels of activity.