Multiple choice

Directions: Choose the correct option for the given question.

_____ expenses are excluded from cost.

  1. Normal

  2. Abnormal

  3. Direct

  4. Indirect

  5. All of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Abnormal expenses, such as those caused by fire or theft, are non-recurring and not related to normal production. They are excluded from cost accounts to ensure the cost of production reflects only normal operating activities.

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