RCOP

Replacement Cost Operating Profit (or Replacement Cost of sales Operating Profit).

RCOP is operating profit calculated and stated on the basis of the replacement cost of purchases, rather than historical cost.

The RCOP measure is designed to reduce the variability of reported operating profits, resulting from fluctuations in commodity input prices and related foreign exchange differences.

See also

• Cost of sales
• First in first out (FIFO)
• Operating profit
• Profit before interest and tax