Which of the Following Is an Argument Against Using Historical

question 128

Multiple Choice

Which of the following is an argument against using historical cost in accounting?

• A) Fair values are more relevant.
• B) Historical costs are based on an exchange transaction.
• C) Historical costs are reliable.
• D) Fair values are subjective.

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Definitions:

Paired-comparison Method

A technique in performance appraisal where an employee's performance is compared directly with that of another employee.

Consistency

The quality of always behaving or performing in a similar manner, allowing for reliability and predictability.

Performance Improvement

A systematic approach to analyzing and enhancing organizational processes and individual performance to achieve better outcomes.

Ability

The competence or skillset that an individual possesses to perform specific tasks or activities.