The total costs associated with the purchase of an asset, for accounting purposes. see also declining balance method, depreciated cost, historical cost, paper profit.
The initial amount of money spent to acquire an asset. It is equal to the price paid, or present value of the liability incurred, or fair value of stock issued, plus normal incidental costs necessary to put the asset into its initial use.
The actual cost of land, buildings, pipelines and other plant items (in the Code of Federal Regulations) "to the person first devoting it to public service." (Distinguished from the cost to a subsequent owner of acquiring such property after it is already "devoted to public service"). In ratemaking a rate base developed on original cost will not include the difference between the pipeline's acquisition cost and the original cost of facilities acquired. See HISTORICAL COST.