Which is the best definition of replacement cost?
Which is the best definition of replacement cost? Replacement cost is a term referring to the amount of money a business must currently spend to replace an essential asset like a real estate property, an investment security, a lien, or another item, with one of the same or higher value. How does the cost of replacing an asset change? The cost to replace an asset can change, depending on variations in the market value of the asset and other costs needed to get the asset ready for use. When calculating the replacement cost of an asset, a company must account...