A Limitation of Current Cost Accounting Does Not Include the Fact

question 23

Multiple Choice

A limitation of Current Cost Accounting does not include the fact that:

• A) Replacement costs are easily determined, and therefore the preparation cost is low
• B) Replacement costs do not reflect what it would be worth if the firm decided to sell it
• C) CCA assumes assets would in fact be replaced, or replaced with that type of asset and not another
• D) There are too many versions of current cost accounting, making it confusing to preparers

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Definitions:

False Imprisonment

The intentional confinement or restraint of a person against his or her will.

Tort Claim

A legal claim arising from an act or omission that causes injury or harm to another, allowing the injured party to seek compensation.

Evidence

Information or objects presented in court to prove or disprove facts in a legal case.

English Common Law

A legal system developed in England and used as the basis of jurisprudence in many English-speaking countries, characterized by the doctrine of judicial precedent.