Reference Entry

replacement cost

Edited by Jonathan Law

in A Dictionary of Accounting

Fifth edition

Published in print July 2016 | ISBN: 9780198743514
Published online November 2016 | e-ISBN: 9780191803147
replacement cost

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The cost of replacing an asset, either in its present physical form or as the cost of obtaining equivalent services. If the latter is lower in amount than the former, the conclusion is that the assets currently used by the company are not those it would choose to acquire in the market place. Replacement cost may be used to value tangible fixed assets and in some circumstances such ...

Reference Entry.  75 words. 

Subjects: Accounting

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