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    Arguments Against Historical Cost Use in Accounting

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

    Fair values are more relevant.
    Historical costs are based on an exchange transaction.
    Historical costs are reliable.
    Fair values are subjective.

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    Fair values are more relevant is the correct response. Many companies contend that it is not fair for a company to use the historical ...

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    This solution helps with arguments against historical costs.