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Testing Expenses

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(Querist)
30 May 2009 What will be the accounting treatment for amount paid to laboratory for testing of product? Under which head this expense will be debited? Is this a manufacturing expense?
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CA.Tarun Maheshwari

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CA.Tarun Maheshwari (Expert)
30 May 2009 These expenses can be transferred to Research and Development Expenses. In your case it can be treated as direct expense

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