Suppose you decide to start a landscape gardening business. Use an old truck that has already paid in full. You use your parents' store to store the van and other business equipment. In addition, it stores and takes care of the trees, shrubs and plants that it uses in its work on its parents' land.

Suppose your parents do not charge you for the use of the warehouse or the land during the first two years, but from the third year they will charge you a reasonable rent (to market). His mother helps him in the business answering phone calls and providing information to customers. For now, she does not charge for this service, but the plan is that in the third year she will start charging as an employee.

In the price of your services as a landscaper, should you include any costs associated with your mother's truck, barn, land, and services when calculating the total cost of your service? The basic arguments FOR or AGAINST are the following.

IN FAVOR: If you do not include charges for these costs, your costs are underestimated and in turn the profitability of the business will be overestimated.

AGAINST: At this time, you are not actually incurring costs related to these activities or items; therefore, no cost should be recorded.