The historical cost of an asset at the time it is acquired or created is the value of the costs incurred in acquiring or creating the asset, comprising...

cost Incremental cost Indirect cost Life-cycle cost Outline of industrial organization Repugnancy costs Semi-variable cost Total cost Variable cost Gross...

Cost accounting is defined by the Institute of Management Accountants as "a systematic set of procedures for recording and reporting measurements of the...

Cost of goods sold (COGS) is the carrying value of goods sold during a particular period. Costs are associated with particular goods using one of the several...

spend the money elsewhere Historical cost, also known as accounting cost, the original value of an economic item Variable cost, costs of doing business...

balance sheet is usually the historical cost or fair market value, whichever is lower. This is known as the "lower of cost or market" rule. Prepaid expenses...

capitalize the related interest cost. Accounting Rules spreads out a couple of stipulations for capitalizing interest cost. Organizations can possibly capitalize...

range of accounting models designed to correct problems arising from historical cost accounting in the presence of high inflation and hyperinflation. For...

Activity-based costing (ABC) is a costing method that identifies activities in an organization and assigns the cost of each activity to all products and...

depreciation separately on the balance sheet has the effect of preserving the historical cost of assets on the balance sheet. If there have been no investments or...

activities of an enterprise can be divided into artificial time periods. Historical cost principle: requires companies to account and report assets' and liabilities'...

bottom line, sales profit, or credit sales) is an entity's income minus cost of goods sold, expenses, depreciation and amortization, interest, and taxes...

Revenue. Net book value of an asset is the difference between the historical cost of that asset and its associated depreciation. Under most financial...

important to require adjustments to the basic financial statements." Historical Cost Accounting, i.e., financial capital maintenance in nominal monetary...

value of capital exist: capital at historical cost and capital at market value. Historical cost is the original cost of an asset at the time of purchase...

a result of use or the passage of time. Amortization is the acquisition cost minus the residual value of an asset, calculated in a systematic manner over...

and real estate values are listed at market value rather than at historical cost or cost basis. Personal net worth is the difference between an individual's...

(customer discounts, returns, and allowances) Gross profit = net sales – cost of goods sold Operating profit = gross profit – total operating expenses...

value is based on mark-to-market valuations; for assets carried at historical cost, the fair value of the asset is not recognized. Determining fair value...

(opex) is an ongoing cost for running a product, business, or system. Its counterpart, a capital expenditure (capex), is the cost of developing or providing...

if an impairment is required. If the fair market value goes below historical cost (what goodwill was purchased for), an impairment must be recorded to...

depreciation OCF = (revenue − cost of good sold − operating expense − depreciation)* (1−tax rate)+depreciation OCF = (Revenue − cost of good sold − operating...

an asset and debiting a liability, which means that both decrease. Assets Cost Contingent liability Depreciation Financial Accounting Overhead (business)...

values on the balance sheet as market conditions change. In contrast, historical cost accounting, based on the past transactions, is simpler, more stable...

with the actual settlement in something else.[citation needed] In historical cost accounting, currencies are assumed to be perfectly stable in real value...

wages, costs of raw materials, services ...) but not decline in asset value, cost of borrowing and obligations to governments. Although lease have been capitalised...

cost equates to the total production time that could have been utilized if the machine did not break down. Sunk costs (also referred to as historical...

adherence to the cost accounting objectives. According to the Institute of Cost and Management Accountants, cost audit is "an examination of cost accounting...

activities that constitute the entity's ongoing major operations. Cost of Goods Sold (COGS) / Cost of Sales - represents the direct costs attributable to goods...

management should be forward looking. The methodology applied is based on historical cost of goods sold. The ratio may not be able to reflect the usability of...