Imagine we bought a building in 1990 for 40,000 that is now worth 120,000. If we rented
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Imagine we bought a building in 1990 for £40,000 that is now worth £120,000. If we rented a similar building now it might cost us £30,000 a year. What use would you make of the knowledge that the building originally cost £40,000 when deciding whether or not to rent a similar building now, or buy another one for £120,000?
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The original cost is now completely irrelevant for decisionmaking purposes whether at thi...View the full answer
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Frank Woods Business Accounting Volume 2
ISBN: 9780273693109
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Authors: Frank Wood, Alan Sangster
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