Home > Glossary > User Cost (in Valuation Of Mineral Deposits)
Meaning / Definition of
User Cost (in Valuation Of Mineral Deposits)
Categories: Economics,
user cost is the concept proposed for the valuation of the depletion of mineral deposits according to which a timebound stream of net revenues from the sale of an exhaustible natural resource is converted into a permanent income stream by investing part of the revenues, that is, the user cost allowance, over the lifetime of the resource. The remaining amount of the revenue is regarded as true income.
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