Question

Which of the following cost are not excluded from the cost of inventories as per AS 2:

Normal loss which occurs during the production process is apportioned over the remaining number of units and abnormal loss is treated as an expense.

A Abnormal amounts of wasted materials, labour, or other production costs

B Storage costs, unless the production process requires such storage

C Administrative overheads that do not contribute to bringing the inventories to their present location and condition

D Normal amounts of wasted materials, labour, or other production costs

E Selling and distribution costs

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