cost accounting

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February 12, 2017 at 8:06 am #372052
krishna
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for q9 of September 2016, part 1 is right because prices of current ordinary and preference shares are increasing whereas they remain the same if historical cost accounting is used. can you explain why part 2 is right?
February 12, 2017 at 8:21 am #372056
MikeLittle
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Cost of sales is based on historic cost of inventory and not on replacement cost

In addition, depreciation is calculated on historic cost of assets rather than on their current values

OK?
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