on 04-19-2011 11:06 AM
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
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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