Ans. Original cost is the total price associated with the purchase of an asset. The original cost of an asset takes into consideration all of the items which can be attributed to its purchase and to putting the asset to further use. Original cost is also known as an asset's cost basis for tax purposes.Straight Line Depreciation method or the Original Cost method is the simplest and most commonly used depreciation method. In this method, the difference between the original cost of an asset and its estimated scrap value is calculated and then it is divided by the number of years in its estimated calculated life.