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While calculating cost of production, when we consider administration cost or when not??


Aditi Goel

Aditi Goel

CA Inter

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24-Apr-23 23:03

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Answers (6)

Generally adminstration cost Should not be taken to Cost of production. But If question anything hints over it then it should be Included in the cost of production


Saravana Perumal

Saravana Perumal

CA Inter

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24-Apr-23 23:29

Admininstrative expenses related to production has to be taken in cost of production


James Paul

James Paul

CA Inter

60

25-Apr-23 02:36

Saravana Perumal

Generally adminstration cost Should not be taken to Cost of production. But If question anything hints over it then it should be Included in the cost of production

So in ICAI module Qu 7..on what basis we add administration expenses to cost of production??


Thread Starter

Aditi Goel

Aditi Goel

CA Inter

7K+

25-Apr-23 08:24

James Paul

Admininstrative expenses related to production has to be taken in cost of production

See above..


Thread Starter

Aditi Goel

Aditi Goel

CA Inter

7K+

25-Apr-23 08:25

Thread Starter

Aditi Goel

See above..

https://resource.cdn.icai.org/66681bos53808-cp10u6.pdf Page 10.139 They stated an assumption that admin costs are part of cost of production. You can assume otherwise based on the question


Sriram Somayajula

Sriram Somayajula

Admin

26-Apr-23 07:23

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