Material cost valuation under CAS-6 covers receipt, issue, assignment, presentation, and disclosure principles for cost statements. Guidance Note on Cost Accounting Standard 6 lays down principles and methods for classification, measurement, assignment, presentation and disclosure of material cost for products and services. It covers receipt valuation for indigenous and imported materials, self-manufactured materials, capital spares, normal loss, shrinkage, forex conversion, demurrage, and subsidies, while excluding finance costs and abnormal costs. It also explains issue valuation under FIFO, LIFO and weighted average methods, assignment to cost objects, treatment of subcontracted work and indirect materials, and disclosure of major items, valuation basis, abnormal costs, related-party purchases and imputed costs.
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Provisions expressly mentioned in the judgment/order text.
Material cost valuation under CAS-6 covers receipt, issue, assignment, presentation, and disclosure principles for cost statements.
Guidance Note on Cost Accounting Standard 6 lays down principles and methods for classification, measurement, assignment, presentation and disclosure of material cost for products and services. It covers receipt valuation for indigenous and imported materials, self-manufactured materials, capital spares, normal loss, shrinkage, forex conversion, demurrage, and subsidies, while excluding finance costs and abnormal costs. It also explains issue valuation under FIFO, LIFO and weighted average methods, assignment to cost objects, treatment of subcontracted work and indirect materials, and disclosure of major items, valuation basis, abnormal costs, related-party purchases and imputed costs.
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