The type of loss that should not affect cost of inventories is ________.

A. normal loss

B. abnormal loss

C. seasonal loss

D. standard loss

Answer: Option A

Solution(By Examveda Team)

The type of loss that should not affect cost of inventories is normal loss. loss:The loss expected or anticipated prior to production is a normal process loss. It is thus called a standard loss. A provision for such a loss is made before starting production. Weight losses, shrinkage, evaporation, rusting etc. are the examples of normal loss. Normal loss increases the cost of production of the usable goods realized.