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Doctors Medicines MCQs Q&A

  1. A and D only
  2. A, B and D only
  3. B and C only
  4. A and C only
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1 Answers

Option 4 : A and C only

The correct answer is A and C only

 Accounting standard - 2: Valuation of Inventories

The objective of this standard is to formulate the method of computation of cost of inventories/stock, to determine the value of closing stock/ inventory at which, the inventory is to be shown in balance sheet till its’ sale and recognition as revenue.

In Inventory Cost should include all: 

  • costs of purchase (including taxes, transport, and handling) net of trade discounts received
  • costs of conversion (including fixed and variable manufacturing overheads) including depreciation of factory plant
  • other costs incurred in bringing the inventories to their present location and condition including freight and insurance
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