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Financial Management
While calculating cost of production, when we consider administration cost or when not??
Answers (6)
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 GoelSee 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