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Re: Factory Overheads Treatment

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Hi Sanjay

 

The Q is not about loading as much as possible onto the Product... It is loading the ex-factory cost on the Product i.e. all expenses which are incurred till the factory gate..

 

The admin and selling expenses are incurred outside factory gate and hence not loaded on Product

 

If there is admin dept in plant to take care of it, that can be loaded on the Product..

 

Again, as I said, all the leading Accounting Standards carry the same view

 

Br, Ajay M


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