Current cost accounting
Current cost accounting is a method of cost accounting. Cost accounting is a way of determining the costs involved in the operations of a business. Current cost accounting specifically involves the computation for the value of an asset based on how much it will cost to have it replaced.
Current cost accounting seeks to avoid accounting inaccuracies by taking several factors into account when computing for the value of each asset. It is more complicated, especially since it can be very tricky to try to decide how the cost of inflation should be set, as well as how to assign a value to the various factors which come into play when computing for the current cost. Current cost accounting becomes particularly difficult during periods of accelerated inflation.