The Logic of the Current Cost Accunting

Edwards and Bell proposed the current cost accounting. It plays a roll of the performanceevaluation of management by making comparisons between periods and between firms possible.It can measure events as they occur; that is, the actual events of a period can be recorded to the ex-clusion of events which occurred in earlier periods or which may occur in future periods-all the e-vents of a period and only the events of that period. The current cost accounting also plays a roll of the decision making of management by dividing business income into the current operating profit and the realizable cost saving. But after examining these rolls in detail, I concluded that they are restricted to the asset purchase actions and the current cost accounting is not a formal accounting system but a temporary one because current cost is not a suitable asset valuation basis in the for-mal financial statements. The sale value accounting also measure all the events of a period and only the events of that period, therefore it is a common feature of current value accounting. We have to study the logic of the sale value accounting again