Final answer:
The same cost concept is not used for external and internal reporting purposes.
Step-by-step explanation:
True/False: The same cost concept used for external and internal reporting purposes.
The statement is False. The same cost concept is not used for external and internal reporting purposes. External reporting is focused on providing financial information to investors, creditors, and regulatory authorities, while internal reporting is aimed at assisting management in making operational decisions.
For example, external reporting often uses historical cost, which is the original cost of an asset at the time of acquisition, while internal reporting may use alternative concepts such as replacement cost or market value to provide more relevant information for decision making.