1. Which item of inventory is under the scope of AS 2 (Revised)?
A) WIP arising under construction contracts
B) Raw materials ✓
C) Shares
D) Debentures held as stock in trade.
CA Intermediate Paper 1
AS 2 - Valuation of Inventory MCQ
Chapter 11 • 4 Questions from ICAI Study Material
Questions
4
Est. Time
6 min
Source
ICAI Book
Question 1 of 4 0 correct | 0 wrong
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Sample Questions: AS 2 - Valuation of Inventory
Preview 3 of 4 questions from Chapter 11
2. Materials and other supplies held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be
A) sold at or above cost. ✓
B) sold above cost.
C) sold less than cost.
D) sold at market value(where market value is more than cost).
3. All of the following costs are excluded while computing value of inventories except?
A) Selling and Distribution costs
B) Allocated fixed production overheads based on normal capacity. ✓
C) Abnormal wastage
D) Storage costs (which is not necessary part of the production process)