There are various accounting valuation methods utilized in the financial world and each one has its advantages and disadvantages. The two methods that will be focused on in this brief is the current cost accounting and the historical cost accounting.
The first method of accounting valuations that will be examined is the current cost accounting. What is the current cost accounting? According to Money-Zine.com, “The financial accounting term current cost accounting refers to an approach that values assets at their fair market value rather than historical cost.”
Historical cost accounting is the second method that will be examined. What is historical cost accounting? According to