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The cost requires a specific sum of money before it can be acquired. Value can be the monetary worth of something which is not necessarily the cost and, in addition, refers to quality, attitude, importance and usefulness. If you place a particular value on something, that refers to the importance or usefulness you think is has
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When determining the value of a fixed Asset and a rebate was given do you reduce the value of the the fixed asset or book at a true cost?
If the company are using cost basis to value their assets then the rebate will reduce the cost.
What is the difference between value and cost?
value is the market price of an item cost in the expense incurred to obtain an item
Define cost pool value?
An entity's cost pool value is defined as a grouping of individual costs, typically by department or other category. Cost pool values allow for cost allocation decisions to be made.
What is historical cost?
Historical cost is the cost of an item when it was originally acquired. Historical cost does not reflect the change of value over time that an asset undergoes.
Depreciation is a process of cost allocation and not valuation What does this mean?
Depreciation spreads the cost of a fixed asset over the useful life of that asset so a portion of that cost is recognized as an expense in each period that the asset is in service. The original cost, less the accumulated depreciation is the net book value of the asset. The net book value may not represent the actual market value of the asset. Depreciation is not concerned with the market value but rather the value of the contribution that the asset makes to the business.
Formula for depreciable cost?
Depreciable Value = Intial Cost - Residual Value
What is the Contradiction between historical cost and fair value?
Historical cost and fair value are opposite effects. Historical cost, also known as historical value, is what an item is worth due to its age. Fair value is what the actual value of said item is.
When determining the value of a fixed Asset and a rebate was given do you reduce the value of the the fixed asset or book at a true cost?
If the company are using cost basis to value their assets then the rebate will reduce the cost.
What is cost plus residual value?
The residual value of "cost plus" is whatever is charged which exceeds the cost. Example: I provide a quote the terms for a project as being "cost plus 20%". If the cost for my project is $100, then I would bill $120. The residual value is $20.
What is the difference between value and cost?
value is the market price of an item cost in the expense incurred to obtain an item
What is capital cost?
the opportunity cost or value of the best by a business
What is Cost of capital?
the opportunity cost or value of the best by a business
Is replacement cost the same as insurable value?
No, insureable value or 'stated amount' is the MAXIMUM that will be paid for that item. replacement cost is the amount it will cost to actually replace the item.
What is implicit cost of capital?
the opportunity cost or value of the best by a business
What is a synonym for cost?
A synonym for cost could be charge, value or worth.
How would you define a current cost?
Current cost. Replacement cost or net realizable value.
What are the relationship between cost and value?
The cost is the amount of money to produce something or to buy something, while value is the consumer's expectation of the product quality to the actual cost paid for it.
