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APC Transaction

Hi Gurus,

Kindly advise what does APC transaction means. I see it in the asset exploerer but can't seem to define it's meaning.

Thanks,

Ellicec

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    Apr 19, 2011 at 11:59 AM

    Hi Ellicec,

    APC = acquisition and production costs

    The upper limit for valuation of an asset in the balance sheet.

    For external acquisitions, acquisition costs include all expenses for the acquisition including incidental acquisition costs, minus reductions to the purchase price.

    Incidental costs include:

    Freight charges

    Forwarding costs

    Commissions

    Costs for building a foundation, and so on

    Reductions in purchase price can be:

    Rebates

    Cash discounts

    Bonuses

    Price reductions because of defects

    Subsidies granted by a third party, and so on

    For in-house acquisitions, production costs include:

    Direct and indirect costs, including materials handling overhead

    Direct labor costs, including payroll overhead

    Special production costs

    Fair administrative expense (can be included)

    Regards Bernhard

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