Historical Cost Is Widely Used for Asset Valuation in Calculating

question 84

Multiple Choice

Historical cost is widely used for asset valuation in calculating return on investment because ________.

• A) it reports the replacement cost of long-term assets
• B) it is more subjective than other approaches
• C) it requires additional data collection
• D) the cost of obtaining additional data exceeds the benefit

---

Definitions:

Distribution Center

A strategic facility in logistics where products are received, stored, and then distributed to consumers or retail outlets.

Miami

A vibrant city located in southeastern Florida, known for its beaches, cultural diversity, and as a major center for finance, commerce, culture, arts, and international trade.

Television Sets

Electronic devices designed to receive broadcast signals and display television programming, videos, or gaming content.

Plant Capacity

The maximum level of output that a facility can sustainably produce within a given period under normal conditions.