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Home > QFINANCE Dictionary > Definition of replacement cost depreciation

Definition of

replacement cost depreciation

Accounting

depreciation based on current replacement cost depreciation based on the actual cost of replacing the asset in the current year

replacement cost depreciation - Related Articles

  • Depreciation

    Calculations

    It is an allocation of the cost of an asset over a period of time for accounting and tax purposes. Depreciation is charged against earnings, on the basis that the use of capital assets is a legitimate cost of doing business. Depreciation is also a noncash expense that is added into net income

  • Managing Retirement Costs

    Best Practice

    In the case of large organizations, the head of human resources should ask the CFO to help by conducting an in-depth analysis of the actual costs of an older workforce, as well as the costs of recruiting replacements. In smaller organizations, the CEO, COO, and CFO should work together to determine whether
    By Beverly Goldberg

  • The Missing Metrics: Managing the Cost of Complexity

    Best Practice

    be done with these oddments, so they are repacked (at a cost variance) and sold at discounts (at a price variance), and new replacements are flown in (at huge freight expense variances) to meet customer service needs. More of the profits disappear into those “catch-all” accounts.
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  • Cost of Goods Sold

    Calculations

    COGS for a manufacturer will include a variety of items, such as raw materials and energy used in production, labor, benefits for production workers, the cost of raw materials in inventory, shipping fees, the cost of storing finished products, depreciation on production machinery used, and factory

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Definitions of ’replacement cost depreciation’ and meaning of ’replacement cost depreciation’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’replacement cost depreciation’ and other financial terms with our online QFINANCE Financial Dictionary.

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