[GNC] Another "multi-account" logical issue - any advice on how to register this?

[Chris Miller]

Hi Flavio,

> I will think about whether I want to consider the shipping expense as part
> of the value of the goods I bought or not. I understand the difference and
> keeping shipping costs separated from the goods value looks correct to me.
> However, I always considered shipping costs as part of the goods value. I
> thought "I paid 220 for this guitar, even though 20 are for shipping, so to
> me it's worth 220" (I know this is wrong, because shipping doesn't add
> value to the goods).

It is not wrong. Shipping does add to the value. The difference between potatoes in a field and potatoes in a store is basically shipping. You pay more for potatoes in a store because there is a cost to get them there.

You paid $200 for the guitar and $20 for shipping. If you sold the guitar for $200, are you breaking even?

The book value of an asset is the cost to acquire and deploy that asset. Shipping is clearly an acquisition or deployment cost.
-- 
Chris.