Units of normal spoilage are divided to total completed units, rather than total actual produced units to calculate
A. normal spoilage rates
B. abnormal spoilage rates
C. normal scrap rates
D. abnormal scrap rates
Answer: Option A
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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