The type of process loss that should not affect the cost of inventory value is _________.
A. abnormal loss
B. normal loss
C. seasonal loss
D. standard loss
Answer: Option A
Solution(By Examveda Team)
The type of process loss that should not affect the cost of inventory value is abnormal loss. Generally, an abnormal loss occurs because of negligence, carelessness, theft, mischief, fraud of employees, or inefficiency.Join The Discussion
Comments ( 3 )
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
B should be correct
option B as it should not effect the cost
Can u expalin the reason??