Question
In accordance with Ind AS 2, explain how the item should
be measured: One of Company's product lines is beauty products, particularly cosmetics such as lipsticks, moisturizers and compact make-up kits. The company sells hundreds of different brands of these products. Each product is quite similar, is purchased at similar prices and has a short lifecycle before a new similar product is introduced. The point of sale and inventory system is not yet fully functioning in this department. The sales manager of the cosmetic department is unsure of the cost of each product but is confident of the selling price and has reliably informed you that the Company, on average, make a gross margin of 65% on each line.Solution
The retail method can be used for measuring inventories of the beauty products. The cost of the inventory is determined by taking the selling price of the cosmetics and reducing it by the gross margin of 65% to arrive at the cost.
Depreciation is charged on __________ as per the ___________ of accounting.
What is the maximum credit guarantee cover on loans to startups in 27 priority sectors ?
Which type of a pension plan is National Pension Scheme (NPS)?
 For the current period, inappropriate capitalization is most likely to:
What is the minimum Capital adequacy ratio (CAR) proposed for All India Financial Institutions in a recently released draft by RBI?
As per Schedule in of the Companies Act, 2013, a Company shall disclose by way of notes additional information regarding aggregate expenditure and inco...
ABC Ltd made an initial investment of Rs. 50,000 and earned Cash Inflows of Rs. 25000 every year till 4 years. What is the payback period for ABC Ltd?
What is the primary obligation of the trustee as per the Indian Trusts Act, 1882? Â
A charge in or upon any movable property, existing or future, created by a borrower in favor of a secured creditor without delivery of possession of the...
 Any legal contract or agreement between a borrower and lender that defines the rights and obligations of the parties in relation to a bond issue is c...
Relevant for Exams:
