Cost of abnormal wastage is:

A. Charged to the product cost

B. Charged to the profit & loss account

C. charged partly to the product and partly profit & loss account

D. not charged at all

Answer: Option B

Solution(By Examveda Team)

Cost of abnormal wastage is charged to the profit & loss account. It is in excess of the standard percentage of wastage set up to account for the normal wastage. The cost of abnormal waste should be excluded from the total cost and charged to Costing Profit and Loss Account. If any value is realized from the waste, the Process Account concerned may be credited.