Herstellungswert
Herstellungswert is a valuation concept used in German-speaking economies to describe the estimated cost of manufacturing or reconstructing an asset under current production conditions. It reflects the amount required to produce a new, functionally equivalent item or to restore a property to its original state, using current prices for materials, labor, and manufacturing overhead. Land and other non-manufacturing elements are typically not included.
In practice, Herstellungswert is used in asset valuation, collateral assessments, insurance planning, and cost accounting. It
Components commonly included in calculating the Herstellungswert are direct material costs, direct labor, and allocated manufacturing
Limitations exist: the Herstellungswert is not a market price and depends on assumptions about technology, productivity,