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current cost


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1. A cost calculated to take into consideration current circumstances of cost and performance levels. 2. The sum that would be required at current prices to purchase or manufacture an asset. This may be the replacement cost or the historical cost adjusted for inflation by means of an appropriate price index. 3. (constant dollar) In the USA, the method of converting historical cost to current cost and then adjusting to constant purchasing power by using the average Consumer Price Index for the current year.

1. A cost calculated to take into consideration current circumstances of cost and performance levels. 2. The sum that would be required at current prices to purchase or manufacture an asset. This may be the replacement cost or the historical cost adjusted for inflation by means of an appropriate price index. 3. (constant dollar) In the USA, the method of converting historical cost to current cost and then adjusting to constant purchasing power by using the average Consumer Price Index for the current year.

Subjects: Accounting.


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