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depreciated cost

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Depreciated cost
In terms of economics: The measure of capital consumption during production, e.g., machine and equipment wear.
In terms of finance: The process of amortization of fixed assets (equipment) to spread the cost over the depreciable life of the assets.

Net Asset Value
In stocks and businesses, an expression of the underlying value of the company. That is, it is a statement of the value of the company's assets minus the value of its liabilities. One way of thinking about the net asset value is that it is the underlying value of a company, not the value dictated by the supply and demand of shares or its market capitalization. It is also called the book value.

depreciated cost

depreciated cost

See book value.



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Under typical circumstances, the going-concern value for a highly profitable nursing facility will exceed the depreciated cost of the tangible assets, which suggests that there is intangible value.
Actual cash value (ACV) is the current depreciated cost.
If the MCO recovers FRV, the MCO will then pay the member the difference between the depreciated cost already paid and the FRV cost.
 
 
 
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