Which of the following statements regarding historic costs is false? Historic costs vary depending on the method

Which of the following statements regarding historic costs is false? Historic costs vary depending on the method

Which of the following statements regarding historic costs is false?

Historic costs vary depending on the method of depreciation a firm uses.
Historic costs represent what the firm paid for an input when it was purchased.
Using historic costs can cause true economic profit to be under or over stated.
Historic costs may not be a good indicator of the current opportunity cost of a piece of capital.

 

 

 

answer:

Historic costs represent what the firm paid for an input when it was purchased.

Explanation:

Actually, historical costs represent what the firm paid for an input when it was purchased, adjusted for inflation.

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