The cost today of purchasing an asset identical to the one currently held is called a(n)________.
A) actual cost
B) current cost
C) prime cost
D) variable cost

Question

Quizplus · Accepted Answer

The cost of purchasing an asset identical to the one currently held is called the current cost, as it reflects the current market value of the asset. Actual cost refers to the cost incurred when the asset was initially purchased, while prime cost refers to the direct cost of producing or acquiring an asset. Variable cost refers to costs that vary with the level of production or activity.

The Cost Today of Purchasing an Asset Identical to the One