Do you all know this???????? :?: :?: :?: If not ask me.... Q1. What is Historical Cost??? :?: Q2. What is Opportunity Cost??? :?: Q3. What is Replacement Cost??? :?: Regards dsv
From India, Delhi
44From India, Delhi
Hi dsv,
Here are your answers :
Historical cost - It describes the original cost of an asset at the time of purchase or payment as opposed to its market value (saleable value, replacement value or value in present or alternative use).
Opportunity costs - It is the cost of something in terms of an opportunity foregone (and the benefits that could be received from that opportunity), or the most valuable foregone alternative.
For ex. - If you've opened a hotel in a building that you own , then opportunity cost is that which you might have got if you would have opened a school or a hostel
Replacement costs - The amount it would cost to replace an asset at current prices. The current cost of producing a similar building or piece of equipment equal in utility and quality to the building or equipment already existing.
hope you got them...
dips
From India, Delhi
Here are your answers :
Historical cost - It describes the original cost of an asset at the time of purchase or payment as opposed to its market value (saleable value, replacement value or value in present or alternative use).
Opportunity costs - It is the cost of something in terms of an opportunity foregone (and the benefits that could be received from that opportunity), or the most valuable foregone alternative.
For ex. - If you've opened a hotel in a building that you own , then opportunity cost is that which you might have got if you would have opened a school or a hostel
Replacement costs - The amount it would cost to replace an asset at current prices. The current cost of producing a similar building or piece of equipment equal in utility and quality to the building or equipment already existing.
hope you got them...
dips
From India, Delhi
Great what a knowledge????
Thanks
But, I think this definition is given in terms of marketing
In the terms of human resource: --
Historical Cost -- The expenditure incurred to recruit, train and develop an employee.
Opportunity Cost -- The rate for capitalizing the earnings expected to be earned by an employee, i.e. how much employee can earn for the company after recruiting, training and developning the employee then placing him in the market
Replacement Cost -- Cost of replacing an existing employee.
I had read about these in a book.
Regards
dsv
From India, Delhi
Thanks
But, I think this definition is given in terms of marketing
In the terms of human resource: --
Historical Cost -- The expenditure incurred to recruit, train and develop an employee.
Opportunity Cost -- The rate for capitalizing the earnings expected to be earned by an employee, i.e. how much employee can earn for the company after recruiting, training and developning the employee then placing him in the market
Replacement Cost -- Cost of replacing an existing employee.
I had read about these in a book.
Regards
dsv
From India, Delhi
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