Net book cost definition

For machines that are underpowered by definition, a small upgrade, such as doubling the ram, can make a big difference in. Net book value cost of the asset accumulated depreciation. Net out definition of net out by the free dictionary. Depreciated cost is the value of a fixed asset net of all accumulated depreciation that has been recorded against it. This is the cost of the asset at which the asset is purchased which includes the purchase price of the asset plus all expenses that are incurred in making the asset. Net book value, also known as net asset value, is the value a company reports an asset on its balance sheet.

For assets, the value is based on the original cost of the asset less any. Book value can also be thought of as the net asset value of a. Book value can also be thought of as the net asset value of a company calculated as total assets minus intangible assets patents, goodwill and liabilities. Net book value nbv refers to a companys assets or how the assets are recorded by the accountant. The depreciated cost is also known as the salvage value, net book value, or adjusted cost basis. The net book value is how much a fixed asset is showing as worth in your businesss accounts. Amount recorded in account books as the total paid for acquiring an asset. Net book value meaning in the cambridge english dictionary. It is equal to the cost of the asset minus accumulated.

Definition of book cost in the financial dictionary by free online english dictionary and encyclopedia. Information and translations of unit cost in the most comprehensive dictionary definitions resource on. Equal to its original cost its book value minus depreciation and amortization. Net book value is calculated as the original cost of an asset, minus any accumulated depreciation, accumulated depletion, accumulated amortization, and accumulated impairment the original cost of an asset is the acquisition cost of the asset, which is the cost required to not only purchase or. How depreciated cost works the depreciated cost method of asset valuation is an accounting. Book value is the term which means the value of the firm as per the books of the company. Book value of an asset is the value at which the asset is carried on a balance sheet and calculated by taking the cost of an asset minus the accumulated depreciation.

The book cost refers to those expenses which do not involve actual cash payments, but rather the provisions are made in the books of accounts to include them in the profit and loss accounts and avail the tax advantages. Nbv is calculated using the assets original cost how. Net book value definition, formula, examples financial edge. Bookadjusted basis bookadjusted basis is a measure of what an asset is worth from a companys perspective on its books. The gross cost of a machine, minus the margin on all goods produced with that machine the gross cost of attending college, minus the incremental increase in earnings derived. Net book value nbv represents the carrying value of assets reported on the balance sheet, and is calculated by subtracting accumulated depreciation from the original purchase cost of the asset. The original cost, less depreciation so far is its net book value. What is the difference between the taxadjusted basis vs. Net book value bedeutung im cambridge englisch worterbuch. Cost book definition is a book made up every 16 weeks containing the names of the shareholders and the number of shares held by each partner and particulars of all transactions in. An amount paid or required in payment for a purchase. Book value is often used interchangeably with net book value or carrying value, which is the original acquisition cost less accumulated depreciation, depletion or amortization.

To define net book value, it can be rightly stated that it is the value at which the assets of a. Net book value is the amount at which an organization records an asset in its accounting records. Cost book definition of cost book by merriamwebster. For the initial outlay of an investment, book value may be net or gross of expenses such as trading costs, sales taxes, service charges and so on. Net book value nbv represents the carrying value of assets. Net book value is the value at which a company carries an asset on its balance sheet. Book cost meaning in the cambridge english dictionary. Known for its innovation in producing a durable, cost and powerefficient netbook for developing countries, it is regarded as one of the major factors that led more top computer hardware manufacturers to begin creating lowcost netbooks for the consumer market. In accounting, book value is the value of an asset according to its balance sheet account balance. In the united kingdom, the term net asset value may refer to the book value of a company. The book value of an asset can change based on factors like improvements. Net book value represents an accounting methodology for the gradual reduction in the recorded cost of a fixed asset. Net cost is the gross cost of an object, reduced by any benefits gained from owning the object.