Question
Consider the following statements regarding the
valuation of inventories under AS 2: I. The cost of inventories includes purchase cost, conversion cost, and other costs incurred to bring the inventories to their present location and condition. II. Inventory should be valued at the higher of cost and net realizable value (NRV). III. The cost of conversion includes direct costs, fixed overheads, and variable overheads incurred during the production process.Solution
Statement I is correct: The cost of inventories includes purchase cost, conversion cost, and other costs incurred to bring the inventories to their present location and condition. Statement II is incorrect: Inventories should be valued at the lower of cost and net realizable value (NRV), not the higher. Statement III is correct: The cost of conversion includes direct costs, fixed overheads, and variable overheads.
The revenues and expenses of a company are displayed in which statement?
Sum of the present ages of A, B, C and D is 60 years. After 6 years ratio of their ages is 5:4:3:2. What is C’s present age?
Match the following lakes with their respective continents:
Expenditure of installation of a new machinery, is:Â
Dry ice is:
The ratio of the number of English books to Hindi books in a library shelf is 5:3. If 108 Hindi books are written by Pradeep, which constitutes 36% of t...
Aruna has a younger sister whose age is 8 years less than that of Aruna. If Aruna’s sister’s age is 18 years, then Aruna’s age is:
Which one of the following is the mandate of the Committee on Estimates?
Which of the following devices does NOT make use of current carrying conductor in a magnetic field?
Which one of the following Vedas is the Sama Veda of songs and rituals?
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