Cost Accounting question

[Cory]

Originally Posted by AdamHeard

But a piece of scrap 1" aluminum plate that's roughly a square foot could be found pretty commonly... Maybe not in the *exact* same dimensions but it certainly is pretty equivalent; that is a lot more in the gray area than someone simply slashing the price on something. Scrap has a pretty uniform price ($2-4 per pound for aluminum usually from metal supplier scrap bins from what I've seen.... Not the same on ebay, but close enough).

I think the idea is that it has to be a COTS item.

From Section 8.3.4.4:

"The purchase price of a COTS item offered for sale by a VENDOR to any customer."

Farther down it refers to prorating raw materials to the smallest commonly sold unit, which is also relevant.

What I interpret this to mean is that if you get it off ebay (or if someone gave you a discount, which is essentially the same thing as buying it off ebay) you have to account for the lowest price the same size, or closest larger sized plate would cost from a vendor (note the definition of vendor--ie: an ebay seller cannot, in most cases, be considered a vendor) such as McMaster, Metal Supermarkets, etc.

$0.02