Which of the Following Statements Regarding the Use of Historical

Multiple Choice

Which of the following statements regarding the use of historical costs and current costs to compute return on investment (ROI) is(are) true?
(A) Historical costs are based on the original costs to acquire a long-term asset, while current costs represent the costs to replace the long-term asset.
(B) For a specific multiple-period project, the return on investment (ROI) computed using current costs will generally be less than the ROI computed using historical costs.

A) Only (A) is true.
B) Only (B) is true.
C) Both of these are true.
D) Neither of these is true.