Q24
The loss which arise in manufacturing activity on account of inherent nature of the product is ________.
A.
normal loss
AnswerB.
abnormal loss
C.
net loss
D.
gross loss
Answer: Option A
Solution
Answer: Option A
Solution:
The loss which arise in manufacturing activity on account of inherent nature of the product is normal loss. Normal loss means that loss which is inherent in the processing operations. It can be expected or anticipated in advance i.e. at the time of estimation.