The initial direct cost of negotiating and arranging a finance lease, e.g., commissions and legal fees, are included in the leas, receivable and allocated over the lease term.
However, similar costs of a manufacturer- or dealer-lesser incurred in negotiating and arranging a lease are excluded from initial direct costs. Thus, they are expensed when the soiling profit is recognized normally the start of the lease term IAS 17).

Prevention attempts to avoid defective output, e.g., by employee training, reviews of equipment design, preventive maintenance, and evaluation of suppliers. Accordingly, the preventive costs equal U $701,000 U $275,000 design revie.ofs + U $180,000 process engineering + U $90,000 scheduled maintenance + U $1,000 training).

A process costing system is used when a company mass produces a standardized product on a continuous basis. The production department becomes the cost center.

The calculation of transfer prices in the international arena must be systematic. A scheme for calculating transfer prices for a firm may correctly price the firm's product in Country A but not in Country B. The product may be overpriced in Country B, causing sales to be lower than anticipated. Alternatively, the product may be underpriced in Country B, and the authorities may allege that the firm is dumping its product there.