reproduction cost
Học thuậtThân thiện
Definition
Noun: - The cost of reproducing physical property minus various allowances (especially depreciation): This term refers to the estimated current expense required to duplicate an existing asset or property with an identical or substantially similar one, accounting for factors like wear and tear (depreciation) and obsolescence. It is a concept used in accounting, insurance, and asset valuation.
Usage
This term is primarily used in formal, technical contexts related to finance, insurance, accounting, and property appraisal. - It is used to determine the insured value of property or to assess the current value of an asset for balance sheet purposes. - It often appears in discussions about replacing damaged or destroyed property.
Examples
- Noun:
- The insurance payout was based on the reproduction cost of the building, not its original purchase price.
- For the annual report, the accountant calculated the reproduction cost of the factory machinery, factoring in ten years of depreciation.
Advanced Usage
- "Determining reproduction cost": The process of calculating this value.
- Determining the accurate reproduction cost requires a detailed appraisal of materials and current labor rates.
- "Replacement cost vs. reproduction cost": A common comparison in valuation. "Reproduction cost" is the cost to create an exact replica, while "replacement cost" is the cost to acquire a new asset with similar functionality, which may be different.
- The reproduction cost for the historic molding was high, but the replacement cost for a modern equivalent was much lower.
Variants and Related Words
- Replacement Cost (n): The current cost to replace an asset with one of equivalent utility, not necessarily an identical copy.
- Depreciated Cost (n): The original cost of an asset minus accumulated depreciation.
- Appraisal (n): A professional assessment of the value of property.
Synonyms
- Replacement Value: Often used interchangeably in casual contexts, though technically distinct (see Advanced Usage).
- Current Cost: A broader term that can encompass reproduction cost.
Related Phrases
- "Cost of reproduction": A phrase with identical meaning to "reproduction cost."
- The cost of reproduction for the vintage car was prohibitive.
Noun
- cost of reproducing physical property minus various allowances (especially depreciation)