Solution-Economic cost is equal to the current replacement

Economic cost is equal to the current replacement cost

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Reference no: EM132416332

Discussion Board - Cost Analysis

When materials are stored in inventory for a period of time before being used in the production process, the accounting cost and economic cost differ if the market price of these materials have changed from the original purchase price. Accounting cost is equal to the actual acquisition cost and economic cost is equal to the current replacement cost. After reading the articles "U.S. Car Business in Major Shift" and "Car Making in America", which cost do you feel the U.S. Car industry (GM, Ford, etc.) is most affected by - accounting or economic cost?

Write an essay of at least 300 words with APA format. Write in essay format not in bulleted, numbered or another list format.

Use at least three sources. Include at least 3 quotes from your sources enclosed in quotation marks and cited in-line by reference to your reference list. Example: "words you copied" (citation) These quotes should be one full sentence not altered.

Reference no: EM132416332

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Economic cost is equal to the current replacement cost

Reference no: EM132416332

Reference no: EM132416332

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