Asset Costs

Current Dollars
Current dollars refer to the cost of an asset in terms of today’s price level, adjusted for inflation. For example, if today the Consumer Price Index (CPI) is 180, an automobile that cost $20,000 when the CPI base was 100 would cost $36,000 in current dollars.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.