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financial management...working capital management

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(Querist)
07 April 2009 sir my doubt is that sometimes we consider administrative expenses for the purpose of calculation of stock of finished goods but sometimes not..

my doubt is regarding qn illustration 5 & 6 of page no 7.20 of pcc book

please tell me teh reason
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yogeshwar

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yogeshwar (Expert)
09 April 2009 IF ANY PART OF ADMINISRATION EXPENSE IS RELATED WITH PRODUCTION AND SPECIFIC INFORMATION REGARDING IT IS PROVIDED IN QUEATION , ONLY THEN THESE ARE TO BE CONSIDERED FOR FINISHED GOODS. OTHERWISE ADMINISTRATION AND SELLING EXPENSES ARE TO BE CONSIDERED ONLY FOR DEBTORS.
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