Legal Dictionary of Pakistan
Quick lookup for English, Urdu, and Latin legal terms used in Pakistani jurisprudence.
Accelerated Cost Recovery System
An accounting method that is used to calculate as,,l depreciation and that allows for the faster re covery of costs by assigning the asset a shoru-r useful life than was previously permitted under the Internal Revenue Code. 0 This system iq; -plies to property put into service from 1981 t c 1986. It was replaced in 1986 by the Modifu~<i Accelerated Cost Recovery System. - Abbr. ACRS.
Adjusted cost basis.
Basis resulting from the original cost of an item plus capital additions minus depreciation deductions.
Average cost
see cost (1).
Average variable cost
the average cost per unit of output, arrived at by dividing the total cost (fixed cost and variable cost) by output. Cf. Long-run incremental cost.
Cost
n 1. The amount paid or charged for something; price or expenditure. Cf. EXPENSE.
Cost push inflation.
Inflation caused by a rise in production costs.
Modified Accelerated Cost Recovery System.
See ACCELERATED COST RECOVERY SYSTEM.
aboriginal cost
The cost of an asset incurred by the first company to use it for public utilities.
accruing costs
Costs and expenses incurred after judgment.
accruing costs.
See COST (s).
acquisition cost
An asset's net price; the original cost of an asset. - Also termed historical cost; original cost.
acquisition cost.
See COST (1).
adjusted cost basis.
See BASIS.
after cost
A delayed expense; an expense, such as one for repair under a warranty, incurred after the principal transaction.
applied cost
A cost appropriated to a project before it has been incurred.
average cost
The sum of the costs of beginning inventory costs and the costs of later additions divided by the total number of available units.
avoidable cost
A cost that can be averted if production is held below a certain level so that additional expenses will not be incurred.
bill of costs.
See BILL (2)
carrying cost
Accounting. The variable cost of stocking one unit of inventory for one year. Carrying cost includes the opportunity cost of the capital invested in the inventory. -Also termed cost of carrying.
closing costs
Real estate. The expenses that must be paid, usu. in a lump sum at closing, apart from the purchase price and interest.
common cost
See indirect cost under COST.
cost accounting
See cost accounting method under ACCOUNTING METHOD.
cost accounting method
The practice of recording the value of assets in terms of their cost. - Also termed cost accounting
cost and freight
A term in a quoted sales price indicating that the quoted price includes the cost of the goods and freight charges to the named destination, but not insurance or other special charges. ( During shipment, the risk of loss is on the buyer. - Abbr. CY; C & F; CandF.
cost approach
A method of appraising real property, based on the cost of building a new property with the same utility, assuming that an informed buyer would pay no more for the property than it would cost to build a new property having the same usefulness. Cf. MARKET APPROACH; INCOME APPROACH.
cost basis
See BASIS (2),
cost bond
See BOND (2)
cost bond.
A bond given by a litigant to secure the payment of court costs.
cost depletion
Oil & gas. The recovery of an oil-and-gas producer's basis (i.e., investment) in a producing well by deducting the basis proportionately over the producing life of the well. Treas. Reg. § 1.611-2. "Under cost depletion, the taxpayer in an oil and gas property deducts the basis in the property from the income as oil and gas are produced and sold. Cost depletion is calculated by a formula ... [that] relates the recovery of the taxpayer's investment to the proportion that the current unit sales of oil and gas bear to the total anticipated sales of oil and gas from the property. The investment is recovered ratably over the life of the reserves." John S. Lowe, Oil and Gas Law in a Nutshell 353 (3d ed. 1995).
cost justification
Under the Robinson-Patman Act, an affirmative defense against a charge of price discrimination dependent on the seller's showing that it incurs lower costs in serving those customers who are paying less. 15 USCA § 13(a).
cost of carrying
See carrying cost under COST.
cost of completion
Contracts. A measure of damages based on the expense incurred by the party not in breach to finish the promised performance.
cost, insurance, and freight
A term in a quoted sales price indicating that the price includes the cost of the goods as well as freight and insurance charges to the named destination. 0 During shipment, the risk of loss is on the buyer. But the seller must provide insurance at a specified amount (usu. at a minimum of 110'0). - Abbr. C.I.F. Cf. FREE ALONGSIDE SHIP; FREE ON BOARD.'-C.i.f' is a mercantile symbol that is commonly used in international sales contracts. It is defined by section 2-320 of the UCC and by the Incoterms - 1953 and the Revised American Foreign Trade Definitions - 1941. Under all of these definitions the letters 'c.i.£' mean that the price covers the cost of the goods, the cost of insuring them for the benefit of the order of the buyer, and the cost of carrying them to the named point, almost always the destination. Like the other mercantile symbols, the meaning of 'C.I.F.' may be varied by agreement." William D. Hawkland, Uniform Commercial Code Series § 2-320:01 (1984).
cost-benefit analysis
An analytical technique that weighs the costs of a proposed decision, holding, or project against the expected advantages, economic or otherwise.
cost-book mining company
An association of persons organized for the purpose of working mines or lodes, whose capital stock is divided into shares that are transferable without the consent of other members. ( The management of the mine is entrusted to an agent called a purser.
cost-of-capital method
A means of measuring a utility's cost of acquiring debt and equity capital. 0 Regulatory commissions often use this method to determine a fair rate of return for the utility's investors.
cost-of-living clause
A provision (as in a contract or lease) that gives an automatic wage, rent, or benefit increase tied in some way to cost-of-living rises in the economy. 0 A cost-ofliving clause may also cover a decrease, though this is rare. See INFLATION. cost-of-living index See CONSUMER PRICE INDEX.
cost-plus contract
A contract in which payment is based on a fixed fee or a percentage added to the actual cost incurred.
cost-push inflation
See INFLATION.
costs de incremento
See COSTS OF INCREASE.
costs o f increase
See COSTS OF INCREASE.
costs of collection
Expenses incurred in receiving payment of a note; esp., attorney's fees created in the effort to collect a note.
costs of increase
Hist. Costs of court that are awarded in addition to what a jury awards. 0 Juries usu. awarded the successful party only a small sum for costs. A party wishing to recoup the additional costs had to file an affidavit of increase setting forth what further costs were incurred by taking the matter through trial. -Also termed costs de incremento See affidavit of increase under AFFIDAVIT.
costs of the day
Costs incurred in preparing for trial.
costs to abide event
See COST (3).
court costs
See COST (2).
current-cost accounting
A method of measuring assets in terms of replacement cost. ( This approach accounts for inflation by recognizing price changes in a company's assets and restating the assets in terms of their current cost.
direct cost
The amount of money for material, labor, and overhead to produce a product.
distribution cost.
Any cost incurred in marketing a product or service, such as advertising, storage, and shipping.
dives costs
n. Ordinary court costs granted to a successful party, as distinguished from limited costs (such as out-of-pocket costs) allowed to a successful pauper who sued or defended in forma pauperis. 0 The term derives from the name of Dives, the supposed name of the rich man in the parable of the rich man and Lazarus (Luke 16:19-31). Dives is a Latin word meaning "rich."