The cost model attempts to reflect the amount that would be required to
A) replace the asset's service capacity.
B) value older financial assets where there is no longer a market for the asset.
C) value the asset.
D) value older non-financial assets where there is a market for the asset.

Question

Quizplus · Accepted Answer

The cost model is used to reflect the amount required to replace the asset's service capacity. This includes costs associated with purchasing or constructing similar assets with similar capabilities.

The Cost Model Attempts to Reflect the Amount That Would