1a. The measurement principle is now essentially a mixed bag where some assets are measured at historical cost and others are measured at fair value. Tying this in to other areas of the conceptual framework, briefly discuss why equipment is reported at historical cost and investments are reported at fair value.

1b. In accounting, companies incur costs and these costs eventually become expenses. These costs can generally be classified into two categories product costs and period costs. Briefly discuss the nature of when each of these costs become expense. Provide an example of expense we see on income statements as part of your discussion.