Treatment of administration cost in cost sheet

Costing

In question to prepare Cost sheet ,administration cost is silent regarding its nature whether production related or general ,what should we assume ?

Ramya Nagarajan

CA Final

★ 1K+

26-Feb-23 21:16

563

Answers (2)

If question is silent about the Administration overheads then we should consider it as General and it will be added in the Cost of goods sold.

Karthick A

CA Final

★ 1K+

26-Feb-23 21:31

Karthick A

If question is silent about the Administration overheads then we should consider it as General and it will be added in the Cost of goods sold.

Added to cost of sales.

CA Suraj Lakhotia

Admin

27-Feb-23 14:33