Financial Dictionary

This dictionary contains:
24549
financial terms

Replacement cost




Replacement cost

Cost to replace a firm's assets.

RELATED TERMS
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Cost
The opposite of revenue. An expense that reflects the price of purchasing goods, services and financial instruments. A cash cost means that cash is given up today to the purchase. Also, the purchase price of an investment, which is compared to the sale proceeds to determine capital gain or loss.



SIMILAR TERMS
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Replacement chain
A concept that views a capital investment as an indefinite commitment to a specific type of technology. The replacement chain concept can be used to allow the comparison of mutually exclusive investments with unequal lives.

Replacement chain problem
Idea that future replacement decisions must be taken into account in selecting among projects.

Replacement cost accounting
An accounting method that includes as part of depreciation the difference between the original purchase price of an asset and the current replacement cost.

Replacement cost insurance
Insurance that pays out the full amount required to replace damaged property with new property, without taking into account the depreciated value of the property.

Replacement cycle
The frequency with which an asset is replaced by an equivalent asset.

REPLACEMENT PARTS EMPLOYEES Credit Union
REPLACEMENT PARTS EMPLOYEES is a credit union with head office in LITTLE ROCK, AR

Replacement risk
A type of risk resulting from a situation in which the holder of a contract knows that the counter party will be unable to meet the terms of a contract, and thus a new replacement contract will have to be entered into.

Replacement value
Current cost of replacing the firm's assets.

Replicating portfolio
A portfolio constructed to match an index or benchmark.



PREVIOUS AND NEXT TERMS
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Reorganization bond
A bond issued by a company undergoing a reorganization process.

Repatriation
The return from abroad of the financial assets of an organization or individual.

Repayment
Partial settlement of a debt (perhaps at monthly or quarterly intervals).

Replacement chain
A concept that views a capital investment as an indefinite commitment to a specific type of technology. The replacement chain concept can be used to allow the comparison of mutually exclusive investments with unequal lives.

Replacement chain problem
Idea that future replacement decisions must be taken into account in selecting among projects.

Replacement cost

Replacement cost accounting
An accounting method that includes as part of depreciation the difference between the original purchase price of an asset and the current replacement cost.

Replacement cost insurance
Insurance that pays out the full amount required to replace damaged property with new property, without taking into account the depreciated value of the property.

Replacement cycle
The frequency with which an asset is replaced by an equivalent asset.

Replacement risk
A type of risk resulting from a situation in which the holder of a contract knows that the counter party will be unable to meet the terms of a contract, and thus a new replacement contract will have to be entered into.

Replacement value
Current cost of replacing the firm's assets.

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This dictionary contains 24549 terms.







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