---
title: O.C.G.A. § 10-1-253. Computation of cost.
collection: code
id: 10-1-253
cite_as: O.C.G.A. § 10-1-253 (2025)
canonical_url: https://georgiacommons.org/code/10-1-253
md_url: https://georgiacommons.org/code/10-1-253.md
text_url: https://georgiacommons.org/code/10-1-253/text
source_url: https://www.legis.ga.gov/api/document/docs/default-source/joint-features-document-library/t10-(v8)-2024-pdf.pdf?sfvrsn=1992b47e_0#page=139
date: 2025
status: active
corpus_version: 2025-supplement-89aa39ab3c68
license: CC0-1.0
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
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version: the only printed version
in_force: true
current_through: Including Acts of the 2025 Regular Session of the General Assembly
heading_path: COMMERCE AND TRADE / SELLING AND OTHER TRADE PRACTICES / BELOW COST SALES
---

# O.C.G.A. § 10-1-253. Computation of cost.

For the purposes of this article, “cost” shall be computed as follows:

(1)(A) When product is purchased by a person from an independent entity, the lowest invoice cost to the person from the independent entity for product of like grade and quality within 15 days prior to the date of resale of the product by the person; or

(B) When product is purchased by a person from a related entity, the lowest transfer price charged to the person for product of like grade and quality within 15 days prior to the date of resale of the product by the person, provided that the transfer price is reasonable; or

(C) If neither subparagraph (A) nor (B) of this paragraph applies, the lowest posted or published wholesale price of all sellers of product of like grade and quality normally serving the geographic area in which the person is located during the 15 days prior to the date of resale of the product by the person; plus

(2) A reasonable cost of doing business as determined pursuant to generally accepted accounting principles; plus

(3) Freight charges and any credit against federal or state motor fuel or sales tax not already included in the invoice cost, transfer price, or lowest posted or published wholesale price of the product; less

(4) All trade discounts, allowances, or rebates actually granted to the person on the product; provided, however, that such trade discounts, allowances, or rebates are received on proportionally equal terms by all other customers competing in the distribution of such products.

## History

Code 1981, § 10-1-253, enacted by Ga. L. 1985, p. 458, § 1; Ga. L. 2024, p. 1052, § 2(11)/SB 448, effective July 1, 2024.

## Amendments

The 2024 amendment, effective July 1, 2024, part of an Act to revise, modernize, and correct the Code, substituted “however, that” for “however,” in paragraph (4).