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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

Former Member
replied

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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