Multiple choice

Directions: Choose the correct option for the given question:

Normal waste ____ part of cost of production.

  1. forms

  2. does not form

  3. may form

  4. may not form

  5. none of these

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Normal waste is considered an inherent part of the production process and is therefore absorbed into the cost of the good units produced. Abnormal waste, conversely, is excluded from production costs.