Dictionary of Accounting Terms: original cost
original cost
initial amount recorded for an asset excluding any adjustments to the account subsequent to the initial acquisition date (e.g., betterments, additions). Original cost equals the price paid or present value of liability incurred or fair value of stock issued plus normal incidental costs necessary to put the asset into its initial use (i.e., installation, freight).
Dictionary of Business Terms: original cost
original cost
- in accounting, all costs associated with the acquisition of an asset.
- in public utilities accounting, the acquisition cost incurred by the entity that first devotes a property to public use; normally the utility company's cost for the property.
Dictionary of Finance and Investment Terms: original cost
original cost
- in accounting, all costs associated with the acquisition of an asset.
- in public utilities accounting, the acquisition cost incurred by the entity that first devotes a property to public use; normally, the utility company's cost for the property. It is used to establish the rate to be charged customers in order to provide the utility company with a fair rate of return on capital.
Dictionary of Insurance Terms: original cost
original cost
actual price paid for property when it was acquired. The original cost might apply to a piece of jewelry, to a piece of equipment, or to a building. For insurance purposes, original cost is often different from replacement cost or actual cash value.
Dictionary of Real Estate Terms: original cost
original cost
cost to the present owner. Contrast with historic cost.
