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# CORPUS-0004
## Cost Includes More Than Purchase Price
### Status: Training Corpus Seed
### Layer: Layer_0--Primitive_Facts
### Purpose: Teach that the cost of a venture includes every expense required to acquire, hold, move, protect, and sell the good
### Repository Path: docs/training/corpus/Layer_0--Primitive_Facts/CORPUS-0004-cost-includes-more-than-purchase-price.md
---
## 0. Principle
Purchase price is not total cost.
A trader who buys a good must also consider the cost of making that good available for sale in another place or time.
Total cost may include:
- purchase price
- porterage
- cart hire
- animal feed
- storage
- dues
- losses from damage
- delay
- spoilage
- guards or escorts
- payments to clerks, witnesses, or handlers
A low purchase price may still produce a bad venture if the remaining costs are high.
---
## 1. Roman-Visible Example
A trader buys oil in Ostia for 10 asses.
He plans to sell it in Capua.
The purchase price is only the first cost.
He may also pay:
- 1 as to move the amphora from seller to storage
- 2 asses for storage before departure
- 4 asses toward cart space
- 1 as for handling at arrival
- 1 as lost through leakage or breakage risk
The oil did not cost him 10 asses.
It cost him 19 asses before he could sell it.
---
## 2. Minimal Cost Structure
A venture cost requires at least:
1. acquisition cost
2. movement cost
3. holding cost
4. transaction cost
5. loss or damage risk
6. time cost
7. opportunity cost
A trader must count all costs that exist because the venture exists.
---
## 3. Incorrect Modern Assumption
Incorrect assumption:
> If a trader buys for 10 asses and sells for 14 asses, he earns 4 asses.
Correction:
> He earns 4 asses only if there are no other costs. If movement, storage, dues, or damage cost more than 4 asses, the venture loses money.
---
## 4. Simulation Use
This principle supports:
- venture accounting
- transport cost
- storage cost
- spoilage and breakage
- taxes and dues
- delay penalties
- comparison between possible ventures
- failed trades that looked profitable at purchase
The model should not calculate profit from purchase price alone.
---
## 5. Canonical Test
If the model sees:
> Buy oil for 10 asses. Sell oil for 14 asses.
It must ask:
- what did it cost to move the oil?
- what did storage cost?
- were dues paid?
- was any quantity lost?
- how long was capital tied up?
- what other venture was missed?
Only then can total cost be known.
---
## 6. Success Condition
If the model stops treating purchase price as total cost and starts counting every burden created by the venture, this file is functioning correctly.