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Carrying costo

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Why will Interest cost be included in the carrying cost of inventory. It is an expense relating to financing, not related to holding inventory, right?

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Aman Mahajan

Aman Mahajan

CA Final

19K+

13-Jan-21 11:04

272

Answers (5)

Accounting and costing are different. The interest expense is related to inventory holding.


CA Suraj Lakhotia

CA Suraj Lakhotia

Admin

13-Jan-21 11:46

CA Suraj Lakhotia Admin

Accounting and costing are different. The interest expense is related to inventory holding.

Interest expense can be explicit or implicit (opportunity cost) ?


Thread Starter

Aman Mahajan

Aman Mahajan

CA Final

19K+

13-Jan-21 11:54

First of all how app allowed you to took screenshot ? As it is protected and it will show only black screen.


Madhaan S

Madhaan S

CA Final

14K+

13-Jan-21 16:33

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