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  • Theoretical Framework of Accounting (CA - CPT)
  • According to AS 2, cost of inventory should exclude
Multiple choice

According to AS 2, cost of inventory should exclude

  1. direct labour cost

  2. interest on loan

  3. production overhead

  4. freight inward

  5. duty and taxes paid

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Interest on loan should not be added to the cost of inventory.

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