Historical cost is an accounting principle that records assets at their original purchase price, without adjustments for inflation or market fluctuations. This historical cost definition ensures consistency and reliability in financial reporting, as it provides a verifiable and objective measure of an asset’s value. By adhering to this principle, financial statements reflect the actual cost incurred at the time of acquisition, aiding in accurate financial analysis and decision-making.
CMA Prep Course
CMA Exam Academy is a proven, 16-week per part online coaching program to help you pass the CMA. The Academy’s comprehensive curriculum will help you pass the CMA exam and achieve your dreams of earning 6-figures per year, ascend to the executive ranks and earn the respect from your peers.
