what is the difference between replacement cost and evaluation

Egypt
August 17, 2006 2:37am CST
I would like now the differnce between replacement cost of hotel for exampel and the evaluation of this hotel.if there in variance in value how we can justify this variances.
1 response
@ssh123 (31104)
• India
17 Aug 06
In evluation, for most items or a thing, it is done on the market value. If there is going to wear and tear, depreciation amount will be reduced in the total. In case of replacement, generally, the cost of new material(s) will be taken into account. A cost and works accountant has scientific calcualtion for this.