Q43
Normal loss in the manufacturing process leads to _______.
A.
reduction in unit price of other good units
B.
increase in unit price of other good units
AnswerC.
reduction in costing profit
D.
increase in costing profit
Answer: Option B
Solution
Answer: Option B
Solution:
Normal loss in the manufacturing process leads to increase in unit price of other good units. These normal losses are expected in the manufacturing process and cannot be avoided. Due to this our total cost of production will increase.