Final answer:
Option 4:
Opportunity Cost
Market value is the most objective and reliable measure for the current value of divisional assets, reflecting current market conditions and the worth buyers are willing to pay.
Step-by-step explanation:
When objectivity and reliability are at issue, market value is probably the best choice for measuring the current value of divisional assets.
Market value is the price an asset would fetch in the marketplace and is the most objective and reliable measure, especially when compared to historical cost, book value, or opportunity cost.
Unlike historical costs that refer to the original cost of an asset, market value reflects the asset's current worth based on the forces of supply and demand.
Book value, or an asset's value according to a company's balance sheet, can be significantly different from its market value due to depreciation or changes in market conditions. Opportunity cost, while important in strategic decision-making, is a conceptual measure of the value of the next best alternative foregone and is not a tangible value of an asset.
Market value is the most objective and reliable measure for the current value of divisional assets, reflecting current market conditions and the worth buyers are willing to pay.