Some Courts Have Ruled That an Alternative to "Replacement Cost

question 22

Multiple Choice

Some courts have ruled that an alternative to "replacement cost less depreciation" should be used to determine the actual cash value of a property loss.Under this alternative,the value of property lost is determined by the price a willing buyer would pay a willing seller for the property in a free market.This method of determining actual cash value is called the

• A)intrinsic value method.
• B)valued policy method.
• C)fair market value method.
• D)forensic cost method.

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Definitions:

Average Fixed Cost

Fixed production costs (expenses unaffected by output levels) divided over the produced output quantity.

Total Revenue

The overall amount of money generated by a business from its sales activities before any costs or expenses are subtracted.

Flight Attendants

Airline employees responsible for ensuring the safety, security, and comfort of passengers during flight.

Revenues

The entire sum of proceeds a company receives from transactions or services conducted over a specified period.