ACCESSIONAL COST Meaning and
Definition
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Accessional cost refers to the additional expenses incurred by an entity when acquiring a new asset or undertaking a new project. These costs are not included in the initial purchase price or project estimate but are necessary to bring the asset into full operation or completion. Accessional costs can include various expenses related to the acquisition, installation, and integration of the asset or project.
Typically, accessional costs are incurred to ensure that the acquired asset or completed project is fully functional and operational. These costs may include expenditure on additional parts, equipment, or materials required for installation or setup. For instance, when purchasing a new machine for a manufacturing plant, accessional costs may include the cost of transportation, installation, and any necessary modifications or upgrades to existing infrastructure.
Accessional costs can also include expenses related to training employees on the use of the new asset or project. This may involve conducting specialized training programs or hiring external consultants to provide guidance and support during the transition phase. Additionally, accessional costs may encompass any ongoing maintenance or repair expenses associated with keeping the asset or project in optimal condition.
It is essential for an entity to consider accessional costs when budgeting for an acquisition or project to ensure comprehensive financial planning. Failing to account for these costs accurately may result in unexpected financial burdens or delays in the asset's functionality or project's completion.
Etymology of ACCESSIONAL COST
The word "accessional" is not commonly found in English. It seems to be a misspelling or misinterpretation of another word. However, I can provide information about the etymology of the word "accession" and "cost".
1. Accession: The word "accession" derives from the Latin term "accessio", which means "a coming to or approach". In medieval Latin, the term developed to refer specifically to the coming of a person to power or the adoption of a new ruler. From there, it evolved to encompass the act of acquiring or obtaining something, particularly in the context of adding to a collection or acquiring new territory. The word came into English usage in the 16th century.
2. Cost: The word "cost" has its origins in Old French, borrowed from the Latin word "constare", which means "to stand together, to be settled".
