{"id":1783,"date":"2021-10-25T03:53:48","date_gmt":"2021-10-25T03:53:48","guid":{"rendered":"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/?page_id=1783"},"modified":"2022-05-09T16:02:15","modified_gmt":"2022-05-09T16:02:15","slug":"caci-3306-methods-of-allocating-costs-to-an-individual-product","status":"publish","type":"page","link":"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/caci-3306-methods-of-allocating-costs-to-an-individual-product\/","title":{"rendered":"CACI 3306 Methods of Allocating Costs to an Individual Product"},"content":{"rendered":"\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-kv0u4jde-69606122e1041cc673afbde16e80de84\">\n#top .av-special-heading.av-kv0u4jde-69606122e1041cc673afbde16e80de84{\npadding-bottom:10px;\n}\nbody .av-special-heading.av-kv0u4jde-69606122e1041cc673afbde16e80de84 .av-special-heading-tag .heading-char{\nfont-size:25px;\n}\n.av-special-heading.av-kv0u4jde-69606122e1041cc673afbde16e80de84 .av-subheading{\nfont-size:15px;\n}\n<\/style>\n<div  class='av-special-heading av-kv0u4jde-69606122e1041cc673afbde16e80de84 av-special-heading-h1 blockquote modern-quote  avia-builder-el-0  el_before_av_hr  avia-builder-el-first '><h1 class='av-special-heading-tag '  itemprop=\"headline\"  >CACI 3306 Methods of Allocating Costs to an Individual Product<\/h1><div class='av-subheading av-subheading_below'><p>California Civil Jury Instructions CACI<\/p>\n<\/div><div class=\"special-heading-border\"><div class=\"special-heading-inner-border\"><\/div><\/div><\/div>\n<div  class='hr av-av_hr-91d7ccd583a503147498e120fee2ff9b hr-default  avia-builder-el-1  el_after_av_heading  el_before_avia_sc_search '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" 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action='https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/' id='searchform_element' method='get' class='' data-element_id='av-avia_sc_search-f7f83518637509acfac1c9900b84c1e7' ><div class='av_searchform_wrapper'><input type='search' value='' id='s' name='s' placeholder='Search CACI' aria-label='Search CACI' class='av-input-field ' required \/><div class='av_searchsubmit_wrapper '><input type='submit' value='Find' id='searchsubmit' class='button ' title='View results on search page' aria-label='View results on search page' \/><\/div><input type='hidden' name='numberposts' value='8' \/><input type='hidden' name='post_type' value='page' \/><input type='hidden' name='results_hide_fields' value='post_titles,meta,image' \/><\/div><\/form><\/search><\/div>\n<section  class='av_textblock_section av-av_textblock-e878f05c31dff72941bf1e49a00d9ff5 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><ul>\n<li><a href=\"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/\">CACI Jury Instructions Index<\/a><\/li>\n<li><a href=\"https:\/\/caci-fillable-forms.crowdsourcelawyers.com\/\">App: CACI Jury Instructions Fillable Forms Word Format<\/a><\/li>\n<\/ul>\n<\/div><\/section>\n<div  class='hr av-av_hr-91d7ccd583a503147498e120fee2ff9b hr-default  avia-builder-el-4  el_after_av_textblock  el_before_av_textblock '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-kv0u5p6d-eeca5248f51284a8fd5b8a6b2fa5a807\">\n#top .av_textblock_section.av-kv0u5p6d-eeca5248f51284a8fd5b8a6b2fa5a807 .avia_textblock{\nfont-size:20px;\n}\n<\/style>\n<section  class='av_textblock_section av-kv0u5p6d-eeca5248f51284a8fd5b8a6b2fa5a807 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><h2 class=\"SS_Banner\">3306\u00a0Methods of Allocating Costs to an Individual Product<\/h2>\n<hr \/>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">Although no formula for determining the appropriate cost of a particular [product\/service] is set by law, [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">insert one of the following:<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">]<\/span><\/p>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">[the determination of the appropriate cost of [manufacture\/distribution] of a particular product must be reasonably related to the burden the product puts on [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of defendant<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">]\u2019s overall cost of doing business.]<\/span><\/p>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">[the determination of the cost of providing particular services must be reasonably related to the burden the service puts on [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of defendant<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">]\u2019s overall cost of doing business.] <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<div class=\"SS_Note\">\n<h2 class=\"SS_HideShowSection SS_Expandable\"><\/h2>\n<div id=\"TRNotes_n_1\">\n<p><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">New September 2003 <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<p><a href=\"https:\/\/crowdsourcelawyers.com\/\">Crowdsource Lawyers<\/a><\/p>\n<p><a href=\"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\">https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci<\/a><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\"><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<\/div>\n<\/div>\n<div class=\"SS_Note\">\n<h2 class=\"SS_HideShowSection SS_Expandable\">Directions for Use<\/h2>\n<div id=\"TRNotes_n_2\">\n<p>Regarding the first bracketed sentence, if all of the defendant\u2019s products are approximately the same, there is no need to allocate the indirect expense, i.e., overhead, according to the unique \u201cburden\u201d each product generates. In such cases, this paragraph could unnecessarily confuse the jury and should be modified or deleted. <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/p>\n<hr \/>\n<\/div>\n<\/div>\n<div class=\"SS_Note\">\n<h2 class=\"SS_HideShowSection SS_Expandable\">Sources and Authority<\/h2>\n<div id=\"TRNotes_n_3\">\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cDetermination of the defendant\u2019s cost has always been treated as an issue of fact.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Pan Asia Venture Capital Corp. v. Hearst Corp.<\/span>\u00a0(1999) 74 Cal.App.4th 424, 432 [88 Cal.Rptr.2d 118].)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cThese statutes embody California\u2019s fully allocated cost standard, that is, a fair allocation of all fixed or variable costs associated with production of the article or product.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Pan Asia Venture Capital Corp., supra,<\/span>\u00a074 Cal.App.4th at p. 432, footnote omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cCost is to be measured as \u2018the fair average cost of production over a reasonable time, rather than the cost of one item on a particular occasion.\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Pan Asia Venture Capital Corp., supra,<\/span>\u00a074 Cal.App.4th at p. 432, fn. 6, internal citation omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cVariable costs are costs that vary with changes in output, while fixed costs are those that do not vary with changes in output.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Turnbull &amp; Turnbull v. ARA Transportation Inc.<\/span>\u00a0(1990) 219 Cal.App.3d 811, 820 [268 Cal.Rptr. 856].)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cCalifornia employs a fully allocated cost standard to determine whether a sale has violated section 17043. Under sections 17026 and 17029 \u2026 cost means invoice cost plus the vendor\u2019s full cost of doing business or six percent.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">G.H.I.I. v. Mts, Inc.<\/span>\u00a0(1983) 147 Cal.App.3d 256, 275 [195 Cal.Rptr. 211], internal citations omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cWe find the use of the fully allocated cost method, when viewed in conjunction with the injurious intent requirement of section 17043, is rationally related to the valid legislative purpose \u2026 as it assists in preventing the creation or perpetuation of monopolies.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Turnbull &amp; Turnbull, supra,<\/span>\u00a0219 Cal.App.3d at p. 822.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cTo be legally acceptable, the allocation of indirect or fixed overhead costs to a particular product or service must be reasonably related to the burden such product or service imposes on the overall cost of doing business.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Turnbull &amp; Turnbull, supra,<\/span>\u00a0219 Cal.App.3d at p. 822.) <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<\/div>\n<\/div>\n<h2 class=\"SS_Heading\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\"><span class=\"SS_ib\" data-housestyle=\"EMPHASIS_ib\">Secondary Sources<\/span><\/span><\/h2>\n<div>1 Witkin, Summary of California Law (11th ed. 2017) Contracts, \u00a7\u00a7\u2009623\u2013629<\/div>\n<div>3 Levy et al.,\u00a0California Torts, Ch. 40,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Fraud and Deceit and Other Business Torts<\/span>, \u00a7\u200940.153\u00a0(Matthew Bender)<\/div>\n<div>49\u00a0California Forms of Pleading and Practice, Ch. 565,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Unfair Competition<\/span>\u00a0(Matthew Bender)<\/div>\n<div>23\u00a0California Points and Authorities, Ch. 235,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Unfair Competition<\/span>\u00a0(Matthew Bender)<\/div>\n<div class=\"SS_Note\">\n<div id=\"TRNotes_n_3\"><\/div>\n<\/div>\n<\/div><\/section>\n<div  class='hr av-80u22v-d4cc4f7e52c4c28d0f38ddc1badef69f hr-default  avia-builder-el-6  el_after_av_textblock  el_before_av_textblock '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-5ju6kn-64692d1fc01b8e1b7928c479c1837f09\">\n#top .av_textblock_section.av-5ju6kn-64692d1fc01b8e1b7928c479c1837f09 .avia_textblock{\nfont-size:22px;\n}\n<\/style>\n<section  class='av_textblock_section av-5ju6kn-64692d1fc01b8e1b7928c479c1837f09 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><p><a href=\"https:\/\/crowdsourcelawyers.com\/\">CrowdSourceLawyers.com<\/a><\/p>\n<\/div><\/section>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":3,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-1783","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - 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