This concept is correct if the asset is a scarce resource or asset that cannot be replaced at a lower than the recoverable value? What if the asset is available at the market and can be replaced at a price lower than the recoverable value? A typical example is that of a trading company that buys coffee in bulk (at $100 per kg) and sells it to retailers (at $150 per kg) and individuals (at $200 per kg). What is the cost of the coffee (asset) to the company for selling the coffee to retailers?