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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.
depreciated cost See book value. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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In fact, the value is often reduced to a small fraction of the physically depreciated cost if a new license for the building cannot be obtained. The reimbursement you get on replacement cost is the same as the current cost of your computer and not the petty depreciated cost you would get with actual cash value policy. Where depreciated cost is used the profit and loss account will instead bear an annual depreciation charge. |
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