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FEDERAL, STATE, LOCAL INCO'.iE TAXES AJID EXCESS PROFITS TAXES
 These must not be included in the overhead erienses but for this
purpose shall be considered, as non-oerating expeense.

DEFERRED EXPENSE
 Ex-)enses, such :.s insurance, paid for in the period under budget,
but partly a-- liable to a,. future period, must be properly ap.portioned
to the budget period.

DONAT I ONS
 Donations of the character not allowed by the Bureau of Internal
Revenue must not be included in overhead expenses.

INTEREST ON IITVEST1 E7TT
 Interest on owner's investment or capital must not be included
in the overhead expenses.

INTEREST EARNED
 Interest Earned should not be included in operating income, but
shall be considered as a non-operp.ting income due to having sufficient
capital invested to secure this income.

NON-OPERATING I11CO01E AiD EXPENSES
 Any unusual or extraordinary items of income PaLd expense such as
dividends, fire loss, special sales ca)rp,'igns, development work, etc.,
must not be included in income or overhead expenses. Such items are
classed as "Other Income" and "Deductions from Income" and are to be
omitted in the Cost Formula.


 STANDARD CALC'JLATIOI SH'.ET

 It is m-ndatory that each manufacturer keep detailed records of
 the cost of ea-ch individual style of bag manufactured by him.

 For this purpose the Code Authority has r:-proved a standard form
 of calculation sheet, a sample of which is shown on the following p.r-c.

 These Standard Calculation Sheets shoving the detailed costs of
 each style must be available to the authorized agents of the Code
 Authority upon request.