Podcast
Questions and Answers
What does 'distribution costs' refer to in the context of Ind AS 2?
What does 'distribution costs' refer to in the context of Ind AS 2?
- Costs related to bringing goods to their current location
- Costs incurred during the production process
- Costs associated with manufacturing the products
- Costs incurred by the seller to complete a sale transaction (correct)
According to Ind AS 2, why are distribution costs excluded from the cost of inventories?
According to Ind AS 2, why are distribution costs excluded from the cost of inventories?
- They are accounted for separately in financial records
- They are considered insignificant for accounting purposes
- They increase the overall cost of inventories
- They are not related to bringing goods to their current location (correct)
What determines the allocation of costs to joint products as per the Indian Accounting Standard 2?
What determines the allocation of costs to joint products as per the Indian Accounting Standard 2?
- Size of the production facility
- Time taken for production
- Relative sales value of each product (correct)
- Total production costs
When are joint products considered separately identifiable in a production process?
When are joint products considered separately identifiable in a production process?
Why are most by-products often considered immaterial in terms of accounting?
Why are most by-products often considered immaterial in terms of accounting?
Which costs are allocated between products on a rational and consistent basis in joint product scenarios?
Which costs are allocated between products on a rational and consistent basis in joint product scenarios?
What is the net realizable value (NRV) of the by-product BP?
What is the net realizable value (NRV) of the by-product BP?
Which of the following costs is deducted from the cost of conversion for allocation between joint products MP1 and MP2?
Which of the following costs is deducted from the cost of conversion for allocation between joint products MP1 and MP2?
How is the joint cost allocated between MP1 and MP2?
How is the joint cost allocated between MP1 and MP2?
What is the cost per unit for MP2 after allocating the joint cost?
What is the cost per unit for MP2 after allocating the joint cost?
What is the value of closing stock for MP1?
What is the value of closing stock for MP1?
According to Ind AS 41, how are inventories comprising agricultural produce harvested from biological assets measured on initial recognition?
According to Ind AS 41, how are inventories comprising agricultural produce harvested from biological assets measured on initial recognition?
What is the method of allocating costs to products when the cost of conversion is not separately identifiable?
What is the method of allocating costs to products when the cost of conversion is not separately identifiable?
In the scenario where a byproduct is immaterial, how is it measured and accounted for?
In the scenario where a byproduct is immaterial, how is it measured and accounted for?
What happens when more than one product is produced in a process resulting in joint products?
What happens when more than one product is produced in a process resulting in joint products?
How is a byproduct treated when it is material in a production process with joint products?
How is a byproduct treated when it is material in a production process with joint products?
In what scenario is the carrying amount of a main product not materially different from its cost?
In what scenario is the carrying amount of a main product not materially different from its cost?
How is the cost of each product determined when the cost of conversion is separately identifiable?
How is the cost of each product determined when the cost of conversion is separately identifiable?
