An Analyst Is Using U

question 11

Multiple Choice

An analyst is using U.S.Generally Accepted Accounting Principles (GAAP ) to estimate the value of a subsidiary of a U.S.firm,and the country of the subsidiary is experiencing hyperinflation.In this case,which of the following accounting techniques is recommended?

• A)Current method.
• B)Temporal method.
• C)Autoregressive method.
• D)Inflation-adjusted current method.

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Definitions:

Marginal Revenue

Additional earnings derived from the sale of an extra unit of a product or service.

Marginal Cost

The additional expense incurred when one more unit of a product or service is created.

Average Total Cost

The total cost divided by the quantity of output produced, representing the per-unit cost of production.