Historical Cost

Business, Legal & Accounting Glossary

Definition: Historical Cost

Historical Cost

Quick Summary of Historical Cost

Method of valuing assets and liabilities based on their original cost without adjustment for changing prices.

Examples of Historical Cost in a sentence

Our historical cost loss of £53 million was recorded after stock holding losses of £34 million.
Fixed assets shall be accounted for based on the historical cost obtained.
The accounts have been prepared under the historical cost convention.
When conforming with historical cost principles, Inventory must be measured at the acquisition cost.

Synonyms For Historical Cost

initial cost, original cost, actual costs, initial estimate, initial outlay

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Historical Cost. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
December 08, 2022 https://payrollheaven.com/define/historical-cost/.
Chicago Manual of Style (CMS):
Historical Cost. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/historical-cost/ (accessed: December 08, 2022).
American Psychological Association (APA):
Historical Cost. PayrollHeaven.com. Retrieved December 08, 2022
, from PayrollHeaven.com website: https://payrollheaven.com/define/historical-cost/

Definition Sources

Definitions for Historical Cost are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 6th January, 2020 | 0 Views.