1) Explain what the "additivity problem" is? In which model(s) might this be a problem? Could the problem be overcome?

2) In which model(s) is the "additivity problem" arguably resolved?

3) Which model might overstate profits (from an operating capacity perspective) when prices are rising?

4) What is "earnings management"? How did this (arguably) play a part in the lobbying of Historic Cost Accounting as the preferred model?

5) Which of the models would you suggest to be the easiest to record? Which requires little data collection - and which the most?

**models: historic cost, current purchasing power, current cost accounting, continuously contemporary accounting