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AS-2 OTHER COST
Accountancy
I couldn't understand concept of the topic "other cost"
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Other cost which are necessary to bring inventory into location and condition should form part of cost of inventory. Eg - to bring raw material into the factory in case of manufacturer or to bring goods into the premises of trader ,he may incur freight charges ,which will be included in the cost of inventory (to bring inventory into the location) . Similarly expenses incurred for modification of goods as per buyer specification would be a included into the cost of inventory (to bring inventory into the condition for selling)
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