The Underlying Basis for the Use of Historical Cost Is

question 54

Multiple Choice

The underlying basis for the use of historical cost is the:

• A)relevance principle.
• B)matching principle.
• C)comparability principle.
• D)reliability principle.

---

Definitions:

Relative Percentages

A statistical measure that represents a portion of a whole as a percentage relative to another quantity.

Price Inelastic

A characteristic of goods for which demand does not significantly change with a change in price.

Demand

The desire and ability of consumers to purchase goods and services at different prices, reflecting the relationship between price levels and quantity demanded.

Rising Health Care Costs

The increasing expense associated with medical services and products, affecting individuals, families, businesses, and governments.