Accounting Dictionary - Letter H

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
Historical cost
is based on the dollar amount originally exchanged to acquire an asset. Historical cost includes the purchase price and any additional costs necessary to obtain the asset and prepare it for its intended use. Additional costs (costs besides the purchase price) may include transportation costs, insurance for asset delivery and others. A historical cost also refers to an accounting principle requiring financial statements to be based on original costs.
Go Back
Don't see the term you are looking for? Try searching our entire website:
Not a member?
See why people join our
online accounting course:
Free Study Notes
Download free accounting study notes by signing up for our free newsletter (example):
First Name:
E-mail:
We never share or sell your e-mail to third parties.