Multiple choice

Directions: Choose the correct option for the given question:

Notional charges are _____ to costing profit to reconcile it with profit as per financial books.

  1. added

  2. deducted

  3. multiplied

  4. divided

  5. none of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Notional charges (like rent on owned premises) are included in cost accounts but not in financial accounts. To reconcile the two, these charges are added to the costing profit.

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