amortized cost

  

Definition

The part of the cost of an asset that is written off as amortization or depreciation in an organization's accounts, and represents accumulated amortization or depreciation to date.

Use amortized cost in a sentence

  • Each car dealership must include the amortized cost in its business plan which is usually an estimate of both the depreciation of the cars that the dealership has purchased and any damage to the vehicles that occurs while in their possession.

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  • Upon acquiring XYZ company, we capitalized the portion of the purchase price attributable to goodwill and treated it as an amortized cost rather than a current expense when compiling our financial statements.

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  • The amortized cost helped us reconcile our extensive inventory as we had some inventory that was fully depreciated as well.

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