3 ms·
Actually it's worth. Cost is different to value. Cost relates to expenses. Buying an asset is not an expense, while the ongoing maintenance and depreciation of
by cylinder 8y ago
Actually it's worth. Cost is different to value. Cost relates to expenses. Buying an asset is not an expense, while the ongoing maintenance and depreciation of it would be considered an expense.
- Retric 8y agoYachts depreciation is huge as people who could pay that much don’t tend to buy used without heavy discounts. So, he was right cost new says little about current value. Worse for the manufacturer, it’s unlikely for anyone to want the same design without heavy modifications should the original buyer become insolvent.
- stephengillie 8y agoCost is the amount of money originally paid for the item, or the amount to replace. Value is an expression of utility. Many expensive things have average utility, and so aren't worth their price.