Current cost return on investment is a better measure of the current economic returns from an investment than historical cost return on investment.

Question

Quizplus · Accepted Answer

Current cost return on investment takes into account the current market conditions and gives a more accurate picture of the returns from an investment. Historical cost return on investment is based on the initial cost of investment and does not reflect changes in the market over time. Therefore, current cost return on investment is a better measure of current economic returns.

Current Cost Return on Investment Is a Better Measure of the Current