replacement cost accounting

replacement cost accounting definition - business

replacement cost accounting

An accounting system that values assets and liabilities according to their replacement cost rather than their historical cost. Replacement cost accounting incorporates the effects of changing prices and the resultant changing values of the items that are listed in a firm's financial statements.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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