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The ‘physical capital maintenance’ concept states that profit is the increase in the physical productive
capacity of the business over the period. This concept is applied in:
A Current cost accounting
B Historical cost accounting
C Current value accounting
D Current purchasing power accountingIn the text book, there is only Historical cost accounting and current value accounting and the answer is A. Current cost accounting – which confused me …
Hi,
Current cost accounting is where we would look at the price of the item in today’s value. So we may have bought a specialist asset at 10,000 several years ago (historic cost) but today it would cost us 12,000 (say).
Thanks
Hello,
Then what’s the difference between Current Cost Accounting and Current Value Accounting?
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