Measuring assets at current costs will result in different ROIs compared to the ROIs calculated on the basis of ________.
A)past cost
B)future cost
C)current cost
D)historical cost
E)suboptimal cost

Question

Quizplus · Accepted Answer

Measuring assets at historical cost is the traditional method of accounting and is typically used to calculate ROIs. This method takes into account the cost of acquiring the assets at the time of purchase and does not consider any changes in the value of the assets over time. Measuring assets at current costs or future costs would result in different ROIs because these methods take into account changes in the value of the assets over time, which can vary depending on economic conditions and other factors.

Measuring Assets at Current Costs Will Result in Different ROIs