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ACTIVITY BASED COSTING

Costing

The 3 rd practical sum pg 5.33 in the ICAI material has a part of the question stating the revenue,cost of goods sold and (soft drinks)cost of bottles returned,my doubt is that when the goods are returned, before returning they would have formed part of revenue in the form of Cost + profit but when returned in the solution section they have deducted only the cost of goods returned but not also the profit generated by it which still forms a part of the revenue. Please clarify

lithish kumar

CA Final

★ 3K+

08-May-21 11:40

402

Answers (5)

Best Answer

Its not the cost of bottles , it is the cost of returning the bottles.... example they must have employed someone to collect and bring back the bottles, the cost of the activity of returning bottles is Rs.60,000 hence added as support cost