A Specific Exception to the Use of Historical Cost to Value

question 76

Multiple Choice

A specific exception to the use of historical cost to value assets is if the net realisable value of inventories falls below cost.In this case,the justification for the use of market value rather than cost relies on the:

• A)comparability principle.
• B)cost versus benefit principle.
• C)materiality principle.
• D)conservatism principle.

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Definitions:

Monogamy

A relationship structure where an individual has only one partner during their lifetime or at any one time (serial monogamy).

Homogamy

The practice or tendency of marrying someone who is similar to oneself in terms of race, ethnicity, religion, education level, social class, etc.

Western Luxury Brands

High-end brands originating from Western countries, known for their quality, exclusivity, and status symbol.

Consumer Market

A category of markets consisting of individuals and households who buy goods and services for personal consumption.