medium
Single Answer
0Melania is conducting a risk assessment for her organization and is attempting to assign an asset value to the servers in her data center. The organization's primary concern is ensuring that it has sufficient funds available to rebuild the data center in the event it is damaged or destroyed. Which one of the following asset valuation methods would be most appropriate in this situation?
Answer Options
A
Purchase cost
B
Depreciated cost
C
Replacement cost
D
Opportunity cost
Correct Answer: C
Explanation
If the organization's primary concern is the cost of rebuilding the data center, Melania should use the replacement cost method to determine the current market price for equivalent servers.