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hello and welcome to this session in which we will discuss the uniform cost capitalization rules or section 263-a known as the unicap what is the unicap or uniform cost capitalization rules well simply put if I want to summarize it in one statement tax laws which is Congress require large businesses that accounts for inventories to capitalize sorting Direct and indirect cost associated with inventories now we should be familiar with this statement up to this point if you if you studied Financial Accounting which you should if you are looking at this lecture we always capitalize costs directly associated with inventory whether we are manufacturing that inventory or we are buying this inventory if we are buying it the purchase price the cost of Transportation any cost necessary if we are manufacturing the inventory well direct material direct labor manufacturing overhead we should be familiar with this whatamp;#39;s an addition or whatamp;#39;s new about this concept is the indirect co
