As per AS 2, cost of inventory includes: MCQ with Answer and Explanation

As per AS 2, cost of inventory includes:

A. Cost of purchase, cost of conversion, and other costs to bring inventory to present location and condition

B. Only purchase price

C. Only conversion cost

D. Selling expenses

Answer: Option A

Solution (By JKExamLibrary)

AS 2 defines cost of inventory to include all costs of purchase, conversion, and other costs incurred in bringing the inventory to its present location and condition.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Practice More Accountancy and Book Keeping Questions

Question #1 Report Error

Under GST, if a registered person makes both taxable and exempt supplies, the input tax credit (ITC) on common inputs must be reversed. Which rule prescribes the methodology for this reversal?

A. Rule 42 and 43

B. Rule 36 and 37

C. Rule 54 and 55

D. Rule 89 and 90

View Answer & Solution Discuss

Correct Answer: Option A

Explanation:
Rule 42 and 43 of the CGST Rules prescribe the methodology for determining and reversing ITC attributable to exempt and non-business supplies.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping