Accounting


A  B  C  D  E  F  G  H  I  J  K  L  M  N  O  P  Q  R  S  T  U  V  W  X  Y  Z

  Dictionary  »  Letter R  »  replacement cost

replacement cost

The amount needed to replace an asset such as inventory, equipment, buildings, etc. Because of the cost principle, replacement cost is not acceptable in the financial statements distributed by a company. However, economists and others believe that replacement cost is more relevant than the historical cost.


» For more clarity on this term: 

  ← Go Back

Download and Print our Complete Learning Package

Now you can highlight, make notes, and study away from your computer.

Complete PDF Package

Click Here to Learn More