LessonsMurabahah and Tawliyah: Cost, Profit and MisstatementQuiz

Mere expenditure is not enough: the charge must satisfy the recognized basis for inclusion. *Fath al-Qadir* distinguishes, for example, protective storage rent and a shepherd’s wage from the listed value-enhancing expenses.

Accordingly, “every overhead cost is part of what I paid for the goods” is not a valid general rule. One must determine the status of a particular expense before including it in the represented cost basis.

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Not every expense qualifies

Murabahah and Tawliyah: Cost, Profit and Misstatement

Mere expenditure is not enough: the charge must satisfy the recognized basis for inclusion. *Fath al-Qadir* distinguishes, for example, protective storage rent and a shepherd’s wage from the listed value-enhancing expenses.

Accordingly, “every overhead cost is part of what I paid for the goods” is not a valid general rule. One must determine the status of a particular expense before including it in the represented cost basis.