As per AS-2, Finished Goods are required to be valued as 'Cost or Net Realizable Value' whichever is earlier. While calculating ' Cost ' there is no variance in principles as per Costing and AS-2 except:
(1) Method of valuation of materials consumption; and
(2) Inclusion of ED in the value.
Would prefer to solicit opinion of experts including further elaboration.
Understanding Finished Goods Valuation: AS-2 Guidelines on Cost or Net Realizable Value and Excise Duty Considerations A discussion on the valuation of finished goods according to Accounting Standard 2 (AS-2) and cost accounting principles highlights that finished goods should be valued at 'Cost or Net Realizable Value,' whichever is lower. The query points out differences in the valuation of material consumption and the inclusion of Excise Duty (ED) in the value. The initial query seeks expert opinions for further clarification. The sole reply suggests that the original poster is knowledgeable and should provide guidance, indicating a request for more detailed input or clarification from the query initiator. (AI Summary)
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