Accounting Dictionary
Replacement Cost
The replacement cost is all the costs needed to get an asset ready for use.
The replacement cost of the new machine includes $4,000 for the machine, $600 for shipping, and $150 for set up. The total replacement cost is $4750 (4,000 + 600 +150).
https://accounting.uworld.com/cpa-review/lc/accounting-dictionary/term/replacement-cost/
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