A Limitation of Current Cost Accounting Does Not Include

question 7

Multiple Choice

A limitation of Current Cost Accounting does not include:

• A) Replacement costs are easily determined, and therefore 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 that 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