Exposure draft on AS 2
This query is : Resolved
Balkrishna
(Querist)
06 January 2009
As per AS - 2, inventories shall be valued at the lower of cost and NRV
Exclusions from the cost of inventores:
(1) abnormal amount of wasted material, labour or other production cost,
(2) storaeg costs unless those costs are necessary in the production process to further the production stage,
(3) administration overhead that donot contribute for bringing the goods to the present condition and location; and
(4) selling and distribution costs;
What is "distribution cost" in the above clause ?
Exclusions from the cost of inventores:
(1) abnormal amount of wasted material, labour or other production cost,
(2) storaeg costs unless those costs are necessary in the production process to further the production stage,
(3) administration overhead that donot contribute for bringing the goods to the present condition and location; and
(4) selling and distribution costs;
What is "distribution cost" in the above clause ?
26 November 2010
Distribution cost is the cost of distributing the manufactured product. For example the cost of distributing the medicine includes the cost of samples which are distributed free to the Doctors, commission paid to the stockists (wholesalers & retailers)etc.
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