Question

principal of cost Accounting with best examples​

Answer 1

Explanation:

The cost principle, also known as the historical cost principle states that assets should be recorded at their original cost, rather than their current market value. ... For example, an asset you purchased a year ago may suddenly gain value for a variety of reasons.

Answer 2

Answer:

Example of Cost Principle

A long-term asset that will be used in a business (other than land) will be depreciated based on its cost. The cost will be reported on the balance sheet along with the amount of the asset's accumulated depreciation. Further, the accumulated depreciation cannot exceed the asset's cost.The cost principle, also known as the historical cost principle states that assets should be recorded at their original cost, rather than their current market value. ... For example, an asset you purchased a year ago may suddenly gain value for a variety of reasons.