“LIFO is acceptable, because it makes use of historical cost; replacement cost is not acceptable because it adjusts cost figures to a value that is not related to the amount paid for them.” Examine...

“LIFO is acceptable, because it makes use of historical cost; replacement cost is not acceptable because it adjusts cost figures to a value that is not related to the amount paid for them.” Examine this point of view for dealing with the problem of changes in the purchasing power of money. How would you match the cost of non-current assets with current revenue?