Relevant costing principles

This topic has 1 reply, 2 voices, and was last updated 5 years ago by John Moffat.

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July 5, 2020 at 8:55 pm #576070
vikulchik07
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Hello!

Can you help me with this topic, pleas?

Should I include or exclude financing cash flows (e.g. interest)?
In your lecture you are including it (Ex2).
Are there some opportunities when it must be done?
I have read, that it must be excluded.

Thanks in advance!

Best regards,
Victoria
July 6, 2020 at 9:33 am #576092
John Moffat
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In Paper PM we include all extra cash flows as I explain in my lectures.

(In Paper FM we do not include interest but that is for completely different reasons and has nothing to do with Paper PM.)
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