Jeremy D. answered • 05/03/19
Tutor
5
(24)
2 Masters degrees, Professor and Tutor in Math, Test Prep, Accounting
Historical cost is the value assigned to an asset based on the actual price paid by the company or the original cost when acquired by the company. This price may not have been in cash, but it will be denoted in terms of money. In GAAP accounting (U.S. accounting standards), historical cost has no adjustment for inflation or changes in value.
