Because dental customers must be willing to pay a price for dental gold that is competitive with the price paid by jewellery customers, the price of gold does not reflect the:
A)current cost concept.
B)replacement cost concept.
C)historical cost concept.
D)opportunity cost concept.

Question

Quizplus · Accepted Answer

The price of gold reflects current market conditions and the opportunity cost of using gold for dental purposes instead of selling it to jewelry customers. It does not reflect the historical cost concept, which would be the price paid for the gold at the time it was originally purchased or acquired, since the market price and its use value can change over time.

Because Dental Customers Must Be Willing to Pay a Price