UNIFORM CAPITALIZATION RULES Definition

Bookmark and Share

UNIFORM CAPITALIZATION RULES (UNICAP), in the U.S., is a method of valuing inventory for tax purposes that requires capitalization of direct costs, e.g. material and labor, and an allocable portion of indirect costs that benefit or are incurred because of production or resale activities. Certain expenses must be included in the basis of the property or in inventory costs rather than currently deducted. These costs are then recovered through depreciation or amortization or as cost of goods sold.

Learn new Accounting Terms

EVA see ECONOMIC VALUE ADDED.

FRF is an acronym for French Francs.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.