replacement cost

• Cantidad de dinero necesaria para sustituir un activo, bien o artículo por uno nuevo de características y calidad similares a los precios actuales del mercado.

The amount of money required to replace an asset, property, or item with a new one of similar kind and quality at current market prices.

1. Insurance valuation methodC1formal

   The amount of money required to replace an asset with a new one of similar kind and quality at current market prices.

   costo de reposición

   • The insurance policy covers the replacement cost of the stolen equipment.
   • We calculated the replacement cost of the building after the fire.
   • Replacement cost is often higher than the original purchase price due to inflation.

2. Accounting termC1formal

   The cost to replace an existing asset with a similar asset at current market prices, used for financial reporting or decision-making.

   costo de reposición

   • The company estimated the replacement cost of its machinery for the annual report.
   • Replacement cost accounting helps businesses adjust for inflation.
   • They decided to insure the factory at its full replacement cost.