When an Asset Is Retired, the Amount of the Gain

question 130

Multiple Choice

When an asset is retired, the amount of the gain is equal to:

• A) the asset's carrying amount.
• B) the difference between the carrying amount and the proceeds.
• C) the accumulated depreciation.
• D) the amount of cash received.

---

Definitions:

Standard Costs

Pre-determined or estimated costs for products or services used for budgeting and performance evaluation purposes.

Actual Costs

The genuine costs incurred in the production or acquisition of goods and services.

Direct Materials Price Variance

The difference between the actual cost of direct materials and the standard cost, multiplied by the actual quantity purchased.

Actual Costs

The real expenses incurred for goods, services, or other operational activities during a specific period of time.