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historical cost
(redirected from Accounting cost)

   Also found in: Wikipedia 0.04 sec.
Historical cost
Describes the accounting cost carried in the books for a current cost of the item.

historical cost
The amount of money that was originally used to pay for an asset. A company records assets on a balance sheet at historical cost, which often bears little relation to the market value of the assets after they have been owned several years. Also called original cost.

historical cost
In the Generally Accepted Accounting Principles, the original cost of an asset on a balance sheet. Many assets, particularly illiquid assets, are recorded on a balance sheet according to their historical cost. A notable exception to this rule is the recording of marketable securities, which are recorded according to their market value. The historical cost usually bears little or no relationship to the market value after an asset has been held for several years.


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With a relative TSR award, the number of shares that the employee will receive varies, depending on actual relative performance; however, the accounting cost to the company remains fixed throughout the term of the award.
It is important to establish standard accounting cost codes and standard common denominators to be used in preparing job estimating.
But the problem is, we don't know how that cost is determined, except to say it's some historical accounting cost and not the true cost of providing an incremental slug of the capacity.
 
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