Economics · Accounting Standards

Consider the following statements regarding Accounting Standard 2 (AS 2 - Valuation of Inventories): Statement I: The cost of inventories should comprise all costs of purchase, costs of conversion, and other costs incurred in bringing the inventories to their present location and condition. Statement II: Abnormal amounts of wasted materials, labor, or other production costs should be included in the cost of inventory to reflect the actual historical expenditure. Statement III: Inventories must be valued at the lower of cost and net realizable value, applying the principle of Prudence. Which of the statements given above are correct?