Reproduction Cost (Noun)
Meaning
Cost of reproducing physical property minus various allowances (especially depreciation).
Classification
Nouns denoting possession and transfer of possession.
Examples
- The accountant carefully calculated the reproduction cost of the building, accounting for depreciation and other allowances to determine its current value.
- In assessing the company's assets, the financial analyst considered the reproduction cost of the equipment, taking into account the significant depreciation that had occurred over the years.
- The insurance company used the reproduction cost minus depreciation to determine the amount they would pay in the event of a loss or damage to the policyholder's property.
- The business owner was required to pay the reproduction cost of the leased building minus allowable depreciation as part of the contract agreement.
- The reproduction cost of the historic mansion, excluding depreciation and other allowances, was significantly higher than its original purchase price due to inflation and changes in market conditions.