What question did this study set out to answer?

To explore the fundamental issues in asset versus expense recognition in accounting and evaluate the relevant costing approach.

Asset Recognition and Economic Attributes--the Relevant Costing Approach.

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This article discusses a new costing approach to resolve asset versus expense issues in accounting, suggesting changes for better economic outcomes.

To explore the fundamental issues in asset versus expense recognition in accounting and evaluate the relevant costing approach.
Define the asset versus expense problem in accounting.
Examine assumptions made by accountants on asset valuation.
Compare and evaluate these assumptions against conventional methods.
Identified flaws in current accounting practices focused on physical form over economic substance.
Proposed that the relevant costing approach leads to better asset valuation and application of accounting concepts.

Sorter et al. (1962) studied this question.

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This article discusses a new costing approach to resolve asset versus expense issues in accounting, suggesting changes for better economic outcomes.