Question

Which of the following cost are not excluded from the

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

cost of inventories as per AS 2:

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

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Solution