Historical cost

Definition:

Describes the accounting cost carried in the books and reflecting the cost of the item at the time it was purchased, rather than its current value.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Deferred compensation

An amount that has been earned but is not actually paid until a later date, typically through a payment plan, pension, or stock option plan.

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