An asset's specificity can be measured in terms of the percentage of its cost that can be recovered if it is redeployed into its next most valuable use.

Question

Quizplus · Accepted Answer

An asset's specificity is related to the extent to which it is tailored to a particular use, and the higher the specificity, the lower the percentage of cost that can be recovered if it is redeployed. Therefore, the statement is correct and the answer is A.

An Asset's Specificity Can Be Measured in Terms of the Percentage