The _____ of an Asset as Defined in U

question 109

Multiple Choice

The _____ of an asset as defined in U.S.GAAP is an opportunity cost in the sense that it reflects an amount that the firm could receive if it sold the asset today.It is the amount the firm forgoes by not selling the asset.In U.S.GAAP, it reflects a market participant perspective, so that the intentions of managers regarding how they plan to use the asset do not determine the measurement.

• A)Current Replacement Cost
• B)Net Realizable Value
• C)Fair Value
• D)Present Value of Future Net Cash Flows
• E)Acquisition cost

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Definitions:

Marginal Costs

The cost incurred by producing one additional unit of a good or service.

Quantity Of Output

The total amount of product or service produced by a company during a given period.

Production Expenses

Costs incurred in the process of manufacturing or producing goods and services.

Variable Cost Estimate

An approximation of the costs that vary in direct proportion to the volume of output or production, such as materials and labor.