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historical cost
(redirected from Accounting cost)

    Also found in: Wikipedia 0.09 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.


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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.
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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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