Which of the Following Is the Advantage of Using Current

question 4

Multiple Choice

Which of the following is the advantage of using current purchasing power adjustment?

• A) It relies on data already available under historical cost accounting.
• B) There is no need to incur cost or effort to collect data about current asset values.
• C) CPI data also readily available.
• D) All of the given options are correct.

---

Definitions:

Average Cost

The total cost divided by the number of goods or services produced or acquired.

Shares

Ownership stakes in a company or financial asset that are divided equally among shareholders, allowing them to receive proportional shares of any declared profits through dividends.

Gross Monthly Earnings

The total amount of income earned in a month before any deductions such as taxes or retirement contributions.

Commission Rates

The percentage or fixed fee that a salesperson receives as compensation for their sales contributions.