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APC means

Hi ,

could you pls let me know the APC means in asset accounting and importance of this?

rgds,

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    Former Member
    Posted on Aug 23, 2007 at 12:43 PM

    APC -Acquisition Production Cost. This is the total amount you spend in procuring an asset or constructing an asset.

    thanks

    Ashok

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    Former Member
    Posted on Aug 23, 2007 at 01:29 PM

    Hi Cherukuri,

    APC stands for Acquisition and Production costs. Acquisition means any asset which you may acquire/ purchase externally. It includes invoice price and other related exp. Associated with it like customs, octroi, freight which you add and arrive at total cost of acquisition for capitalisation of the asset.For ex Say a computer. The total cost which you incurr for the acquisition of the computer including installation will be your APC

    Production cost means any asset which is created internally within the organisation. This is normally created by means of AUC and you go on adding cost to the AUC as and when you incurr exp. for the same.For ex. say addition to the office building. Therefore APC incudes any external acquisition or internal construction of exp. which needs to be capitalised.

    In OADB under 01 deprn area Acquisition & prod Cost tick is activated

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    Regards

    Genie

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