1 Just let me say that this encounter has been entirely professional and most helpful. 2  I liked that I could ask additional questions and get answered in a very short turn around. 3  Esther Woodstock, NY. 4  Thank you so much for taking your time and knowledge to support my concerns.
A project's initial costs are those that are incurred during the design and construction process. They can include any of the following: 1  Planning, preliminary engineering, and project design. 2  Environmental impact report. 3  Project-related staff training.  Final engineering.
BREAKING DOWN 'Original Cost'. For example, the purchase price of a piece of equipment is $20,000. The purchase also involves $1,000 in fees, $700 in shipping and delivery costs, and $3,000 for installation and warranty.The original cost of this piece of equipment would be $20,000 + $1,000 + $700 + $3,000 = $24,700.Determining an asset's original cost is important in calculating the asset's tax basis.he total costs associated with the purchase of an asset. The original cost of an asset takes into consideration all of the costs that can be attributed to its purchase and to putting the asset to use.