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Working capital management

Financial Management

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

Aditi Goel

CA Final

★ 7K+

24-Apr-23 23:03

530

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

CA Final

★ 3K+

24-Apr-23 23:29

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

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

CA Final

★ 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

CA Final

★ 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

Admin

26-Apr-23 07:23

Sriram Somayajula Admin

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

Ok sir

Thread Starter

Aditi Goel

CA Final

★ 7K+

26-Apr-23 08:41