As per AS 2, Inventories include materials awaiting use in production process, what should be included in Inventories from the following:

CA Intermediate · Advanced Accounting · RTP · September 2024
As per AS 2, Inventories include materials awaiting use in production process, what should be included in Inventories from the following:
(A) Secondary Packing material required for transporting and forwarding the material.
(B) Spare parts, servicing equipment and standby equipment
(C) Primary packing material which is essential to bring an item of inventory to its saleable condition, for example, bottles, cans etc., in case of food and beverages industry.
(D) Publicity material

Suggested Answer and Working Notes:

Correct Answer: Option (C)

Primary packing material which is essential to bring an item of inventory to its saleable condition, for example, bottles, cans etc., in case of food and beverages industry.

Topics: AS 2, AS 13

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic