alleryStart learning →Administrative overheads that do not help bring stock to its location are
Acapitalised
Badded to NRV
Cexpensed
Ddeferred
Answer & Solution
Correct answer: C. expensed
Such overheads are unrelated to getting the goods to their present location and condition, so they are recognised as expenses.
Keep practising Inventories
Browse all Inventories questions for CA Foundation, or explore more Accounting topics.
Related questions
Land held for resale by a dealer is classified asWhich items count as inventories held as materials or supplies?Stock on 5 April is 2,40,000; April 1-5 sales 50,000 at 25% on cost, purchases 15,000. StoWhich three heads make up the cost of inventories?Costs of conversion include costs directly related to units, such asThe cost of inventories may be unrecoverable if stock isWhich inventory method most closely mimics the physical flow of goods?Opening stock 40,000; purchases 1,60,000; sales 2,00,000; gross profit 25% of sales. Closi