Historical and Replacement Costs

The historical cost of an asset refers to the actual cost incurred at the time the asset was acquired.

In contrast, the replacement cost stands for the cost which must be incurred if the asset is to be purchased today. These concepts derive from the unstable nature of price behaviour as the two concepts differ due to price variations over time.

Powered By 360Presence

Project Time Cost Trade-off Project Time Cost Trade-off Project Time Cost Trade-off Project Time Cost Trade-off

By Hassham

Leave a Reply

Your email address will not be published. Required fields are marked *