replacement cost

• Montant d'argent nécessaire pour remplacer un actif, un bien ou un objet par un nouveau de type et de qualité similaires aux prix courants du marché.

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.

   Coût de remplacement

   • 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.

   Coût de remplacement

   • 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.