In determining the cost of inventories, it is appropriate to exclude certain costs and recognise them as expenses in the period in which they are…

CA Intermediate · Advanced Accounting · MTP · September 2024
In determining the cost of inventories, it is appropriate to exclude certain costs and recognise them as expenses in the period in which they are incurred. Which of the following is not an examples of such costs:
(A) Abnormal amounts of wasted materials, labour, or other production costs;
(B) Storage costs, unless the production process requires such storage;
(C) Raw Material cost
(D) Selling and distribution costs.

Suggested Answer and Working Notes:

Correct Answer: Option (C)

Raw Material cost

Topics: AS 2

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