Original cost is the price paid to initially acquire an asset. This cost is considered to include the cost to buy an asset, transport the asset to where it is intended to be used, install it, and test it. Original cost also includes sales taxes and other levies. Original cost is the cost at which an asset is recorded in the general ledger. It may subsequently be reduced in the general ledger if the market value of the asset is less than its depreciated or amortized cost.
Original cost is also known as historical cost.