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What is historical cost?
Question 1: What is historical cost? That is, the price you actually paid at the time of purchase, regardless of future changes in the amount.

If you buy a computer, it costs 3000 yuan, and the accountant costs 3000 yuan. After three months, the computer is only worth 2000 yuan, and you can't adjust the original price of 3000 yuan.

3000 is the historical cost.

Question 2: What does historical cost mean? Historical cost, also known as original cost or actual cost, refers to the actual cost incurred when acquiring assets as the recorded value of assets.

Question 3: What does historical cost mean? Hello, classmate, I'm glad to answer your question!

CMA historical cost management accounting in China refers to the initial payment amount of assets, without adjustment for subsequent value changes. (Also called acquisition cost or original cost. )

I hope my answer can help you solve the problem. If you are satisfied, please adopt it as the best answer.

Thank you again for your question. More accounting questions are welcome to be submitted to enterprises in Gao Dun.

Gao Dun wishes you a happy life!

Question 4: What is the historical cost principle? The historical cost principle, also known as the true standard cost principle, means that all kinds of assets of an enterprise should be considered according to the actual cost when they are acquired or purchased, and even if the price changes, they are generally not adjusted. Its main content is: all kinds of property and materials obtained by enterprises should be accounted for according to the original cost, that is, the actual cost, and based on this, they should be apportioned and converted into expense costs. When the price changes, its book value shall not be adjusted unless otherwise stipulated by the state. Pricing by actual cost can prevent arbitrariness, and make accounting information true and reliable, easy to understand and compare.

The principle of actual cost is mainly used to determine the entry amount of property and materials.

Adopting the historical cost principle has many advantages:

First, it is more objective. Historical cost or actual cost is the amount determined by buyers and sellers through normal transactions;

Second, there is an original basis. That is, the invoice can be used as proof and can be verified at any time;

Third, it can prevent enterprises or related personnel from intentionally changing book records under certain needs;

Fourth, simplify accounting procedures and do not need to adjust accounts frequently.

Question 5: What is historical cost accounting? Historical cost accounting refers to the acquisition and consumption of any assets except cash and accounts receivable, which are priced and recorded at historical cost, that is, actual cost. Historical cost refers to the monetary and cash equivalents paid when purchasing, manufacturing and constructing an asset, such as the original purchase price of raw materials plus expenses in the procurement process, the actual purchase price of goods, and the original purchase price of fixed assets plus transportation and installation fees. Pricing and recording based on historical cost mainly has the following advantages:

(1) Historical cost is the price determined by normal exchange in the market, which is objective and verifiable;

(2) The historical cost is close to the asset value at the time of purchase;

(3) Historical cost data is the easiest to obtain, which is consistent with the view of realizing operating income. When acquiring materials and commodities, the historical cost reflects the increase of materials or commodities in the enterprise's inventory; When consuming materials and selling goods, it also reflects its reduction according to historical cost. The specific methods used are FIFO method, weighted average method, batch actual purchase price and so on. And compare the historical cost with the sales revenue.

Question 6: What is the difference between "historical cost" and "present value"? For example, you bought a mobile phone for 2000 yuan six months ago. Today, the historical cost of this mobile phone is 2000 yuan. In the future, an apple will be 2 yuan, so what is the price of 2 yuan now? This is the problem of present value.

Hope to adopt

Question 7: What is the relationship between historical cost and current cost? 1. Historical cost refers to the cash or other equivalent actually paid when acquiring or manufacturing a certain property, that is, the actual cost incurred when acquiring an asset is taken as the recorded value of the asset.

2. Current cost refers to the replacement cost of assets, focusing on the current value of assets, which can also be understood as the net realizable value of assets.

In order to understand the relationship between historical cost and current cost, we should discuss the classification of assets:

1, the current cost of monetary assets such as cash is equal to the historical cost.

2. The current cost of fixed assets such as machinery, equipment and factory buildings can be used as the current cost of old assets after adjusting the difference in service potential with the cost of new assets with the same function but different services. For example, the original cost of an old equipment in an enterprise is 50,000 yuan, the service life is 5 years, and the depreciation is 2 years. At present, the price of equipment with the same function on the market is 120000 yuan, and its service life is 10 year. The current cost of old equipment is 60000 yuan (120000×5/ 10), and the net value is 36000 yuan (60000×3/5).

3. The current cost of raw materials, products and other inventories can be regarded as the current cost, and the replacement price is the current price formed around the fluctuation of the original cost, and the relationship with the historical cost is based on the relationship between market supply and demand.

Question 8: Historical cost The so-called historical cost refers to the cash and other equivalents actually paid when purchasing or manufacturing some offensive property and materials. The historical cost principle requires that the measurement of enterprise assets, liabilities, owners' equity and other items should be based on the actual transaction price or cost of economic business, regardless of the influence of subsequent market price changes. Accounting according to the historical cost principle is helpful to the confirmation of various assets and liabilities and the inspection and control of measurement results; At the same time, according to historical cost accounting, the cooperation between income and expenses is also based on actual transactions, which can make accounting and accounting information true and reliable.

I hope I can help you!

Question 9: What do historical cost, replacement cost, fair present value, variable net present value and present value mean? Historical cost, also known as original cost or actual cost, refers to the actual cost incurred when acquiring assets as the recorded value of assets.

Replacement cost refers to the cash or cash equivalent that an enterprise needs to pay to regain assets with the same or equivalent functions.

Net realizable value refers to the amount of cash or cash equivalents that an asset can receive according to its normal external sales, after deducting the estimated cost, estimated sales expenses and related taxes.

Fair value, also known as fair market price and fair price, refers to the price determined by buyers and sellers who are familiar with the situation under the condition of fair trade, or the transaction price at which an asset can be bought and sold by unrelated parties under the condition of fair trade.

Present value, also known as use value, refers to the value of future cash flows discounted at an appropriate discount rate.