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# CORPUS-0004
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## Cost Includes More Than Purchase Price
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### Status: Training Corpus Seed
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### Layer: Layer_0--Primitive_Facts
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### Purpose: Teach that the cost of a venture includes every expense required to acquire, hold, move, protect, and sell the good
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### Repository Path: docs/training/corpus/Layer_0--Primitive_Facts/CORPUS-0004-cost-includes-more-than-purchase-price.md
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---
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## 0. Principle
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Purchase price is not total cost.
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A trader who buys a good must also consider the cost of making that good available for sale in another place or time.
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Total cost may include:
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- purchase price
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- porterage
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- cart hire
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- animal feed
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- storage
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- dues
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- losses from damage
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- delay
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- spoilage
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- guards or escorts
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- payments to clerks, witnesses, or handlers
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A low purchase price may still produce a bad venture if the remaining costs are high.
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---
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## 1. Roman-Visible Example
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A trader buys oil in Ostia for 10 asses.
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He plans to sell it in Capua.
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The purchase price is only the first cost.
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He may also pay:
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- 1 as to move the amphora from seller to storage
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- 2 asses for storage before departure
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- 4 asses toward cart space
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- 1 as for handling at arrival
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- 1 as lost through leakage or breakage risk
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The oil did not cost him 10 asses.
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It cost him 19 asses before he could sell it.
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---
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## 2. Minimal Cost Structure
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A venture cost requires at least:
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1. acquisition cost
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2. movement cost
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3. holding cost
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4. transaction cost
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5. loss or damage risk
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6. time cost
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7. opportunity cost
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A trader must count all costs that exist because the venture exists.
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---
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## 3. Incorrect Modern Assumption
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Incorrect assumption:
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> If a trader buys for 10 asses and sells for 14 asses, he earns 4 asses.
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Correction:
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> 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.
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---
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## 4. Simulation Use
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This principle supports:
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- venture accounting
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- transport cost
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- storage cost
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- spoilage and breakage
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- taxes and dues
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- delay penalties
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- comparison between possible ventures
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- failed trades that looked profitable at purchase
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The model should not calculate profit from purchase price alone.
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---
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## 5. Canonical Test
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If the model sees:
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> Buy oil for 10 asses. Sell oil for 14 asses.
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It must ask:
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- what did it cost to move the oil?
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- what did storage cost?
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- were dues paid?
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- was any quantity lost?
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- how long was capital tied up?
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- what other venture was missed?
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Only then can total cost be known.
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---
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## 6. Success Condition
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If the model stops treating purchase price as total cost and starts counting every burden created by the venture, this file is functioning correctly.
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