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Intangible Costing
A farmer went to a
local market to buy a cow for his herd.
He saw a young cow
on sale for which the seller demanded Rs 25,000.
The farmer thought
it was a bit on the higher side and enquired the reasons.
The seller told him,
'Sir, this cow will calve every year for next 25 years and will give 10
litres of milk everyday'.
Not convinced, the
buyer asked for the price of another, slightly older cow. 'Rs. 50,000',
came the reply from the seller, adding further, he said, '...she will
never calve and will not produce any milk'.
Surprised, the buyer
questioned the higher value of an apparently useless cow.
Prompt came the
reply, 'Excuse me Sir, but would you attach any premium to something
called ..."character" ?
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