The cost of replacing an asset is known as its:
A)Market cost.
B)Current cost.
C)Present value.
D)Historical cost.

Question

Quizplus · Accepted Answer

Current cost represents the amount that must be spent to replace or reproduce an asset at its current condition and technological level. It takes into account any changes in the asset's value since it was acquired, including depreciation and inflation. Market cost may not always accurately reflect the cost of replacing an asset, as market prices can be affected by supply and demand factors. Present value represents the value of an asset at a particular point in time, based on factors such as interest rates and expected future cash flows. Historical cost represents the original cost of acquiring an asset, but does not reflect any changes in value since that time.

The Cost of Replacing an Asset Is Known as Its