The _____ is the total cost of substituting an asset with an essentially identical asset.
A) cost of disposition
B) replacement cost
C) cost of operating
D) acquisition cost

Question

Quizplus · Accepted Answer

Replacement cost is the total cost involved in replacing an asset with an identical asset. It includes the acquisition cost, transportation, installation, and other related costs. The cost of disposition refers to the cost involved in selling or disposing of an existing asset. The cost of operating relates to the expenses incurred during the normal operation of the asset.

The _____ Is the Total Cost of Substituting an Asset