Which of the Following Is(are)a Difficulty in Determining Current Market

question 45

Multiple Choice

Which of the following is(are) a difficulty in determining current market values when determining the value of fixed assets?

• A) There is an absence of active markets for many fixed assets.
• B) It is difficult to identify comparable assets currently available in the marketplace to value assets in place
• C) It is difficult to make assumptions about the effects of technology and other improvements when using the prices of new assets currently available on the market in the valuation process.
• D) All of the above.

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Definitions:

Divisional Profitability

A measurement of the financial performance of individual divisions or segments within a company, indicating their contribution to overall profit.

Coordination

The process of organizing people or groups so that they work together properly and well.

Profit Centers

Divisions within a company that are treated as separate business units, with their performance measured based on their ability to generate profit.

Transfer Price

The price at which goods and services are sold between divisions within the same company or different companies under the same ownership.