The Book Value of a Plant Asset Is the Difference

question 168

Multiple Choice

The book value of a plant asset is the difference between the

• A) replacement cost of the asset and its historical cost.
• B) cost of the asset and the amount of depreciation expense for the year.
• C) cost of the asset and the accumulated depreciation to date.
• D) proceeds received from the sale of the asset and its original cost.

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Definitions:

Marginal Benefit Assessment

The evaluation of the additional benefits received from using one more unit of a good or service.

Economic Efficiency

A state where resources are allocated in the most effective manner, maximizing the production of goods and services while minimizing waste and costs.

Standard

An established measure or model used for comparison in assessing the quality, quantity, or value of something.

Criterion

A standard or principle by which something is judged or decided.