Accounting Dictionary - Letter R

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
Replacement cost
is a current cost to replace a currently owned (employed) asset with one having the same service potential or future benefit (i.e., current cost of a similar asset). Replacement cost is different from reproduction cost, which is the current cost of an identical (currently manufactured, new) asset. Reproduction cost is often used as the basis for a fire, theft, or other catastrophe insurance.
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