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CIMA Advanced Management Accounting P2 Question # 33 Topic 4 Discussion

CIMA Advanced Management Accounting P2 Question # 33 Topic 4 Discussion

P2 Exam Topic 4 Question 33 Discussion:
Question #: 33
Topic #: 4

An organization has the right to mine for gold on its land. The price of gold and the cost of extraction are such that mining is not currently financially viable. However, the organization has the right to commence mining at any time in the future if the price of gold increases and makes mining financially viable.

This right to commence mining in the future is an option to:


A.

abandon


B.

redeploy


C.

expand


D.

delay


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