COST ACCOUNTING
INFORMATION FOR DECISION MAKING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Kelley Blue Book (KBB)
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Underwriter’s Laboratories (UL)
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Better Business Bureau (BBB)
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American Auto Association (AAA)
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Detailed explanation-1: -The term “Blue Book Value” refers to the value of a vehicle by a guide known as the Kelley Blue Book. The guide not only lists the value of new vehicles, but it also lists used car values. Since the 1920s, the Kelley Blue Book has served as a standard within the auto industry in the United States.
Detailed explanation-2: -Let’s say you bought a car. Its original cost was $20, 000, and depreciation expenses equal $5, 000. The book value of your car would be $15, 000 ($20, 000 – $5, 000).
Detailed explanation-3: -The best ways to determine a car’s worth is by using valuation guides like Kelley Blue Book and looking at live prices online and at dealerships. It’s vital to know a car’s value before you start any transaction to sell, trade in, buy or refinance a vehicle.