Section EB 8 — Income Tax Act 2007: Cost allocation: budgeted method or standard cost method

EB 8 Cost allocation: budgeted method or standard cost method When this section applies (1) This section applies when a person— (a) has a business of manufacturing or producing trading stock; and (b) determines the value of their closing stock at cost; and (c) allocates costs by— (i) a budgeted method; or (ii) a standard cost method; and (d) is not a low-turnover trader to whom section EB 17(3) applies. Apportionment of difference required (2) If any difference arises between the estimated costs of production included in the financial statements of the business for the income year and the actual costs of production, the person must apportion the difference between the cost of trading stock sold during the income year and the closing stock. Defined in this Act: business , closing stock , cost , financial statements , income year , low-turnover trader , , trading stock Compare: 2004 No 35 s EB 8