A primary disadvantage of the amortized cost method of accounting for fixed assets is that the resulting values may not reflect the possible disposal value of the asset.

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The amortized cost method calculates the value of an asset by spreading the cost over its useful life, which may not necessarily reflect the asset's disposal value. This can result in the over- or undervaluation of assets in the financial statements.

A Primary Disadvantage of the Amortized Cost Method of Accounting