Cost model, as its name implies, is to estimate the cost composition and approximate price range of products by establishing mathematical models. The cost estimation model can effectively help the purchasing manager to judge whether the supplier's quotation is reasonable and make sufficient data preparation for the negotiation.

The revaluation mode is to revalue the main fixed assets and current assets that deviate greatly from the actual value of the enterprise according to the methods and standards stipulated by the state. If the enterprise has revalued its assets in the previous assets verification, or because of specific economic behavior, it may not revalue.

Extended data

Revaluation model is one of the two measurement methods available in IAS 16 PPE. This means that we can periodically revalue fixed assets and calculate depreciation according to the newly estimated value within the remaining service time. Since these assets have not been really disposed of, the revaluation gains and losses should be included in other comprehensive income accounts.

Asset revaluation is mainly operated by internal personnel of enterprises and units, so the determined revaluation method should be simple and easy. It is necessary to solve the problem that the book value of assets deviates from the actual value, and to minimize the workload and reduce the difficulty of the work. Three basic revaluation methods, namely price index method, national price method and replacement cost method, are determined, and it is stipulated that some imported equipment can be revalued by exchange rate adjustment method.

Baidu encyclopedia-value revaluation

Baidu Encyclopedia-Building a Cost Model