Defectives ________.
A. cannot be rectified and made into good units
B. can be rectified and mad made into good units
C. can be a part of finished product
D. can be termed as spoilage
Answer: Option B
Solution(By Examveda Team)
Defectives can be rectified and mad made into good units. The defective work report should draw details relating to department, process, defective units quantity, normal and abnormal defects, the cost of rectification etc.Join The Discussion
Comments ( 2 )
Related Questions on Costing
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
Defectives can be made into good units with additional material and/or labour.
Ans must be B
B