Which of these arguments is not a criticism of historical cost valuation?
A)The historical cost allocation system is based on the matching principle
B)The derived profit does not measure contemporary resource usage
C)Valuation of firms based on outdated historical costs is not useful for economic decision-making
D)B and C

Question

Quizplus · Accepted Answer

Option A is not a criticism of historical cost valuation as it explains the principle behind the valuation method. Option B and C are the most common criticisms of historical cost valuation. Option D is a combination of the two criticisms.

Which of These Arguments Is Not a Criticism of Historical