Current cost represents an attempt to derive the specific value or worth for a particular point or period in time of assets, liabilities, expenses, and revenues.

Question

Quizplus · Accepted Answer

Current cost is a method of accounting that attempts to derive the specific value or worth for a particular point or period in time of assets, liabilities, expenses, and revenues. It takes into account the effects of inflation and other factors that may impact the value of the financial items over time.

Current Cost Represents an Attempt to Derive the Specific Value