The replacement cost of an asset:
A) is the same as historical cost.
B) is sometimes called 'current cost'.
C) is the same as economic value.
D) should always be used where the asset is to be replaced.

Question

Quizplus · Accepted Answer

The replacement cost of an asset is sometimes called 'current cost'. It is the cost that would be incurred to replace an asset with an identical or similar asset at the current market price.

The Replacement Cost of an Asset