RECOVERED COST Meaning and
Definition
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The term "recovered cost" refers to the process of regaining or recouping the expenses incurred in a particular activity, investment, or project. It signifies the reimbursement of the initial expenditure that was undertaken to produce or acquire a product, service, or asset.
In business and finance, recovered cost typically relates to the calculation of profitability or return on investment. It represents the point at which the revenue generated from the sale or usage of a product or asset surpasses the original cost incurred to develop, purchase, or produce it. In simpler terms, it is the milestone when the total income surpasses the total expenses.
Recovered cost is an important metric for decision-making processes as it helps determine the point at which the business or investment becomes financially successful or breaks even. It aids in analyzing the profitability of a project, and further revenue generated beyond the recovered cost is considered profit.
Moreover, the concept of recovered cost is also applicable in terms of expense reimbursement. For instance, in government projects or infrastructural ventures, the recovered cost may refer to when the funds allocated for a particular purpose have been fully utilized or reimbursed.
Overall, recovered cost serves as a critical measure in analyzing the financial viability, profitability, and success of various activities, investments, or enterprises.
Common Misspellings for RECOVERED COST
- recovere cost
- eecovered cost
- decovered cost
- fecovered cost
- tecovered cost
- 5ecovered cost
- 4ecovered cost
- rwcovered cost
- rscovered cost
- rdcovered cost
- rrcovered cost
- r4covered cost
- r3covered cost
- rexovered cost
- revovered cost
- refovered cost
- redovered cost
- recivered cost
- reckvered cost
- reclvered cost
Etymology of RECOVERED COST
The term "recovered cost" does not have a specific etymology as it is a combination of two separate words. However, we can understand the meaning of the term by breaking it down.
1. Recovered: The word "recovered" is derived from the Latin word "recuperare", meaning "to regain" or "to recover". It entered the English language via Middle English and Old French. In the context of business and finance, "recovered" refers to the process of recouping or regaining an expense or investment.
2. Cost: The word "cost" comes from the Latin word "constare", meaning "to stand at", "to cost". It also entered the English language through Old French. In finance and accounting, "cost" refers to the amount of money expended or to be expended in acquiring, producing, or maintaining something.
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