Multiple choice

Directions: Choose the correct option for the given question:

______ is not a part of cost of production.

  1. Normal waste

  2. Waste

  3. Abnormal waste

  4. Scrap

  5. Defective
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Abnormal waste arises from unexpected or inefficient events, such as accidents or machine breakdowns. Because it is not inherent to the production process, its cost is charged directly to the profit and loss account rather than the cost of production.

Keep practicing — related questions