Which of the following is NOT a disadvantage of deprival cost accounting?
A)it is more subjective than replacement cost accounting.
B)it fails to concentrate attention on long run attention on long run effectiveness.
C)it fails to give information about the internal usefulness of assets.
D)it is less realistic than replacement cost.

Question

Quizplus · Accepted Answer

The statement "it is less realistic than replacement cost" is incorrect. Deprival cost accounting is actually considered more realistic than replacement cost accounting as it takes into account the actual loss of value of assets over time. A, B, and C are all disadvantages of deprival cost accounting.

Which of the Following Is NOT a Disadvantage of Deprival