Historical cost is widely used for asset valuation because ________.
A)it reports the replacement cost of long-term assets
B)it is more subjective than other approaches
C)it requires additional data collection
D)the cost of obtaining additional data exceeds the benefit

Question

Quizplus · Accepted Answer

Historical cost is used because it is objective and verifiable, and the cost of obtaining additional data for other valuation methods often exceeds the benefits.

Historical Cost Is Widely Used for Asset Valuation Because ________