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प्रश्न
Explain the following:
Replacement cost
Write Short note on Replacement cost.
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उत्तर १
Replacement cost refers to the cost of replacing an asset at current market values.
उत्तर २
Replacement cost refers to the amount of money that would be needed to replace an existing asset with a similar one at current market prices. It represents the cost of acquiring a new asset that performs the same function as the old one. Unlike historical cost, which is based on the original purchase price, replacement cost reflects present-day values. This concept is important in accounting, insurance, and business decision-making, especially when evaluating asset value for replacement or investment purposes.
Notes
Students should refer to the answer according to the question.
संबंधित प्रश्न
Abnormal costs are not recorded as part of production cost. Justify for or against.
Give one difference between product cost and period cost.
"The cost of sugarcane is an avoidable cost." Justify for or against.
State one difference between Historical costs and Predetermined costs.
Differentiate between expired and unexpired costs.
Explain the following with an example:
Marginal cost.
Explain the following with an example:
opportunity cost.
Distinguish between private costs and social costs.
Explain the following Concept:
Out of Pocket Cost
Explain the following:
Differential cost
