Vidyalelo
Commerce · Q67

Costing

Graduate and Post Graduate · Commerce · question 67

Q67

Sale of defectives is reduced from ________.

A.
prime cost
B.
works cost
C.
cost of production
Answer
D.
cost of sales

Answer: Option C

Solution

Answer: Option C
Solution:
Sale of defectives is reduced from cost of production. The sale value of scrap may be deducted from the cost of materials consumed or factory overhead.