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What are the advantages and disadvantages of the revaluation and cost models?
Wiki User
∙ 11y ago
Advantages of cost model: relatively easy to use, and not so time consuming, figure cost is objective.
Disadvantages: the price of an asset may not be a true reflection of the prices in the local area, etc., and information may not be that useful.
Advantages of revaluation model: revaluation is more likely to provide decision-useful information to users, and profits determine the effectiveness of management.
Disadvantages: it can be very costly and time-consuming, and subjectivity comes into important figures.
Wiki User
∙ 11y ago
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