Sale of defectives is reduced from ________.
A. prime cost
B. works cost
C. cost of production
D. cost of sales
Answer: Option C
Solution(By Examveda Team)
Sale of defectives is reduced from cost of production. The sale value of scrap may be deducted from the cost of materials consumed or factory overhead.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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