According to the cost principle, it is preferable for managers to report an estimate of an asset's value.

Name: According to the cost principle, it is preferable for managers to report an estimate of an asset's value.
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According to the cost principle, managers should report the actual cost of an asset, not an estimate of its value. This principle is based on the idea that it is easier to verify the actual cost of an asset than it is to estimate its value, which can be subjective and variable.

According to the Cost Principle, It Is Preferable for Managers