A common application of the cost constraint is
1) recording assets at cost.
2) not disclosing information that is not material and not required in the notes.
3) use of the FIFO cost flow assumption for inventory valuation.
A) 1
B) 2
C) 3
D) 1 and 2

Question

Quizplus · Accepted Answer

The cost constraint refers to the idea that the cost of providing financial information should not exceed the benefits. Not disclosing immaterial information aligns with this principle, as it avoids unnecessary costs.

A Common Application of the Cost Constraint Is