cost less depreciation method

USAGE SUMMARY

The phrase "cost less depreciation method" is grammatically correct and usable in written English.
You could use it when discussing accounting practices, for example, "We implemented a cost less depreciation method to calculate the book value of our assets."

✓ Grammatically correct

Academia

Wiki

News & Media

Science

Encyclopedias

Human-verified similar examples from authoritative sources

Similar Expressions

60 human-written examples

Assets shall be valued on the basis of original cost less depreciation, to the extent that such value can be determined.

Cornell University

Evidence of historical cost and of reproduction cost new less depreciation was submitted.

Cornell University

The company's appraisal on the basis of reproduction cost new, less depreciation, was $1,231,601.

Cornell University

The book value of an asset is the acquisition cost less total accumulated depreciation.

WikiHow

Its valuation engineer testified that in his opinion the value of the property was $900,000—a figure between the cost of construction in 1920, less depreciation, and the cost of construction in 1915 and before the war, less depreciation.

Cornell University

The cost of the portion of these assets the company uses to produce revenues in any period is that period's depreciation expense, and the amount shown for these assets on the balance sheet is their historical cost less an allowance for depreciation, representing the cost of the portion of the asset's anticipated lifetime services that has already been used.

Britannica

That provides reimbursement for what it would cost to replace the insured item at today's prices, rather than just the original cost of the item, less depreciation.

The New York Times

Pre-rehabilitation value of an existing structure means the replacement cost of the structure less depreciation.

Cornell University

The annual financial cost of capital items was calculated using a straight line depreciation method, where the total cost of an item was divided by its useful life years.

Cost Effectiveness and Resource Allocation

Note that if a business continues to replace existing facilities in kind and if the prices of these facilities remain constant, then the numerator (i.e., capital expenditures less depreciation) approximates the cost of real growth in productive capacity.

Harvard Business Review

The annual financial cost of capital items was calculated using a straight line depreciation method, where an item's total cost was divided by the length of its useful life years.

Cost Effectiveness and Resource Allocation

Expert writing Tips

Best practice

When using the phrase "cost less depreciation method", ensure it is clearly defined within the context of financial accounting or asset valuation for better understanding.

Common error

Avoid assuming that the "cost less depreciation method" provides a completely accurate reflection of an asset's current market value, as depreciation is an accounting convention and not necessarily indicative of actual market conditions.

Linguistic Context

The phrase "cost less depreciation method" functions as a noun phrase that describes a technique or approach used in accounting and finance. It specifically refers to the method of calculating an asset's value by subtracting its accumulated depreciation from its original cost. Ludwig AI confirms that this phrase is grammatically correct and usable in English.

Expression frequency: Missing

Frequent in

Academia

20%

Wiki

20%

News & Media

20%

Less common in

Science

20%

Encyclopedias

20%

Formal & Business

0%

Ludwig's WRAP-UP

The phrase "cost less depreciation method" is a grammatically correct and usable term in accounting, used to describe the process of calculating an asset's book value by subtracting accumulated depreciation from its original cost. While Ludwig AI confirms its grammatical correctness, its usage is relatively infrequent. The phrase is primarily found in academic, wiki, news and media contexts. Understanding this phrase is essential for interpreting financial statements and understanding asset valuation techniques. Always ensure that the context clearly indicates you are referring to financial accounting when using this phrase. Related terms include "original cost net of depreciation" and "acquisition cost minus accumulated depreciation", offering alternative ways to express the same concept.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

depreciation deduction from cost

Reorders the terms to emphasize the deduction aspect.

original cost net of depreciation

Uses "net of" for a more concise expression.

acquisition cost minus accumulated depreciation

Replaces "less" with "minus" and specifies "accumulated" depreciation.

book value calculation approach

Focuses on the outcome (book value) and the general approach.

net book value determination process

Similar to book value calculation but more formal.

depreciated cost valuation technique

Highlights the valuation aspect using depreciated cost.

asset valuation after depreciation

Emphasizes asset valuation post-depreciation.

cost adjusted for depreciation

Uses "adjusted for" to indicate the effect of depreciation on cost.

depreciation-adjusted cost basis

Uses 'basis' to mean the original cost for tax purpose.

valuation based on cost reduction from depreciation

Focuses on the reduction of cost due to depreciation in valuation.

FAQs

How is "cost less depreciation method" used in accounting?

In accounting, the "cost less depreciation method" is used to calculate the book value of an asset by subtracting accumulated depreciation from the original cost. This provides a simple way to track an asset's value over time.

What are some alternatives to saying "cost less depreciation method"?

You can use alternatives like "original cost net of depreciation", "acquisition cost minus accumulated depreciation", or "book value calculation approach", depending on the context.

Is "cost less depreciation method" an accurate way to value assets?

While the "cost less depreciation method" is straightforward, it may not always reflect the true market value of an asset. Factors like market demand and obsolescence aren't directly accounted for in this method.

What's the difference between "cost less depreciation method" and replacement cost?

The "cost less depreciation method" uses the original cost minus depreciation, while replacement cost considers the current cost to replace the asset. Replacement cost offers a more up-to-date valuation, whereas "cost less depreciation method" relies on historical data.