Under the Accounting Standards, Which Alternative Measure of Value Is

question 52

Multiple Choice

Under the accounting standards, which alternative measure of value is not permitted to be used for valuing assets?

• A)Historical cost.
• B)Net realisable value.
• C)Fair value.
• D)None of the above. i.e., all are permitted methods in some circumstances.

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Definitions:

Monopoly

A market structure characterized by a single seller dominating the market, with no close substitutes for the product or service offered, leading to limited competition.

Average Cost

The total cost of production divided by the number of goods produced, representing the cost per unit of output.

Marginal Revenue

The additional income that is gained from selling one more unit of a product or service.

Consumer Surplus

The discrepancy between the total sum consumers are prepared and capable of paying for a good or service, and the total sum they end up paying.