EXPIRED COST Meaning and
Definition
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Expired cost refers to a type of expense that has already been incurred by a business or individual but has lost its value or usefulness. It primarily relates to the expiration or obsolescence of certain assets or resources that were once valuable but have reached the end of their useful life. These costs are no longer recoverable or capable of generating any further benefits or revenue.
Expired costs are typically associated with the depreciation or depletion of assets or resources such as machinery, equipment, inventory, patents, or copyrights. As time passes, these items often become outdated, worn out, or consumed, thereby losing their original value. Examples of expired costs may include the cost of repairs for an outdated piece of machinery, the value of expired inventory that cannot be sold, or the cost of a research and development project that did not yield any marketable results.
In financial accounting, expired costs are treated as expenses on the income statement, reflecting the loss of value or benefit. They are not considered future-oriented or capable of generating any potential future income. As a result, expired costs are not included in the computation of assets or net income, and they are deducted from the total revenue to calculate the net profit or loss for a specific period.
Overall, the identification and recognition of expired costs are essential for accurate financial reporting, allowing businesses and individuals to fairly represent the financial results and position of a company or entity.
Common Misspellings for EXPIRED COST
- wxpired cost
- sxpired cost
- dxpired cost
- rxpired cost
- 4xpired cost
- 3xpired cost
- ezpired cost
- ecpired cost
- edpired cost
- espired cost
- exoired cost
- exlired cost
- ex-ired cost
- ex0ired cost
- expured cost
- expjred cost
- expkred cost
- expored cost
- exp9red cost
- exp8red cost
Etymology of EXPIRED COST
The term "expired cost" is not a word with a specific etymology. It is a combination of two words: "expired" and "cost".
"Expired" comes from the Latin word "expirare", which means "to breathe out" or "to come to an end". In the context of the term "expired cost", it refers to the cost that has come to an end or is no longer valid.
"Cost" comes from the Latin word "costare", which means "to cost" or "to value". It refers to the amount of money or resources required to produce or acquire something.
When combined, "expired cost" generally refers to the cost that has elapsed or is no longer current due to the passage of time or the completion of a specific period. It is often used in accounting or financial contexts to refer to costs that are no longer applicable or are considered old or expired.
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