Normal loss in the manufacturing process leads to _______.
A. reduction in unit price of other good units
B. increase in unit price of other good units
C. reduction in costing profit
D. increase in costing profit
Answer: Option B
Solution(By Examveda Team)
Normal loss in the manufacturing process leads to increase in unit price of other good units. These normal losses are expected in the manufacturing process and cannot be avoided. Due to this our total cost of production will increase.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
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