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
Solution(By Examveda Team)
Units of normal spoilage are divided to total completed units, rather than total actual produced units to calculate normal spoilage rates. The normal spoilage will be calculated as the total number of spoiled units, divided by the total units produced, and multiplied by 100.Related Questions on Costing
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A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
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C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
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B. historical cost
C. sunk cost
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