its important to note that; accounting data should be highly based on historical cost due to the following arguments: i. Usually, cost is verifiable as well definite compared to other values which need to be somewhat determined arbitrarily and as a result they would be considerable disagreement as to the amounts to be used. ii. Amounts determined by other bases would have to be revised and adjusted frequently. iii. Usually, comparison with other companies is highly aided if cost is employed.
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Additionally, the costs of obtaining replacement values could outweigh the benefits derived.