The loss which arise in manufacturing activity on account of inherent nature of the product is ________.
A. normal loss
B. abnormal loss
C. net loss
D. gross loss
Answer: Option A
Solution(By Examveda Team)
The loss which arise in manufacturing activity on account of inherent nature of the product is normal loss. Normal loss means that loss which is inherent in the processing operations. It can be expected or anticipated in advance i.e. at the time of estimation.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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