For purposes of public regulation,when computing a fair rate of return,a firm's assets are generally valued at ________ cost.
A) marginal
B) variable
C) either implicit or opportunity
D) declining
E) either historic or reproduction

Question

Quizplus · Accepted Answer

For public regulation purposes, when computing a fair rate of return, the assets of the firm are generally valued at either historic or reproduction cost. Historic cost is the actual cost of the assets when they were purchased, while reproduction cost is the cost that would be incurred to replace the assets. This approach is considered the most appropriate for determining the fair rate of return as it reflects the actual investment made by the firm in its assets.

For Purposes of Public Regulation,when Computing a Fair Rate of Return,a