Historical cost measurement is based on the stability of currency value, which requires assets and liabilities to be recorded according to the actual transaction price at the time of acquisition or exchange, and the recorded book value is generally not adjusted during the existence of assets.

Historical cost measurement emphasizes the objectivity, reliability and verifiability of accounting information, and often only confirms the results of actual trading activities, but does not estimate the transactions that have not yet occurred.

From the perspective of shareholders and creditors, this measurement method is objective and verifiable, and the income calculated by this method is also credible and reliable. Therefore, historical cost measurement is widely used in accounting practice.

Historical cost measurement refers to the amount of cash or cash equivalents paid when acquiring assets, or the fair value of the consideration paid when acquiring assets.

Accounting cost refers to the actual costs incurred by an enterprise in the course of its operation. Including wages, interest, land and housing rent, raw material expenses, depreciation, etc. Production cost refers to all production expenses incurred by production units for producing products or providing services, including all direct expenses and manufacturing expenses.

Accounting cost is an objective and tangible expenditure recorded in the company's account books, including raw materials, power, wages, rent, advertising, interest and other expenses in the process of production and sales. According to China's financial system, the total cost consists of production cost, management cost, financial cost and sales cost.