Scrap Value

Scrap Value
The worth of a physical asset's individual components when the asset itself is deemed no longer usable. The individual components, known as "scrap," are worth something if they can be put to other uses. Sometimes scrap materials can be used as is; other times they must be processed before they can be reused. An item's scrap value is determined by the supply and demand for the materials it can be broken down into.

For example, John has a very old car with a transmission that is shot. Because the cost to replace the transmission ($2,000) is significantly more than what the car would be worth even with a working transmission ($1,000), John decides to sell the car for its scrap value. He takes it to a junkyard where the car's usable parts and metal are valued at $500. Therefore, $500 is the car's scrap value.


Investment dictionary. . 2012.

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Look at other dictionaries:

  • scrap value — UK US noun [C or U] ACCOUNTING, INSURANCE ► SALVAGE VALUE(Cf. ↑salvage value) …   Financial and business terms

  • scrap value — /skræp vælju:/ noun the value of an asset if sold for scrap ● Its scrap value is £2,500 …   Dictionary of banking and finance

  • scrap value — likviduojamo turto vertė statusas T sritis Gynyba apibrėžtis Likviduojamo ar sunaikinamo turto vertė. atitikmenys: angl. scrap value ryšiai: susijęs terminas – likvidacinė vertė šaltinis NATO mokymų ir pratybų finansavimo terminų žodynas AAP… …   Lithuanian dictionary (lietuvių žodynas)

  • scrap value — value as leftovers, value for junk material …   English contemporary dictionary

  • scrap value — noun : the value of an item at the time it is discarded : the value which it is estimated an item will have at the time it is discarded …   Useful english dictionary

  • scrap value — See: salvage value …   Accounting dictionary

  • scrap value — See salvage value …   Big dictionary of business and management

  • scrap value — The sales value of *spoilage …   Auditor's dictionary

  • scrap — {{Roman}}I.{{/Roman}} noun 1 small piece or amount ADJECTIVE ▪ little, small, tiny ▪ She scribbled the address on a little scrap of paper. ▪ last ▪ He removed the last sc …   Collocations dictionary

  • value — The utility of an object in satisfying, directly or indirectly, the needs or desires of human beings, called by economists value in use, or its worth consisting in the power of purchasing other objects, called value in exchange. Joint Highway… …   Black's law dictionary

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