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Commerce · Q182

Costing

Graduate and Post Graduate · Commerce · question 182

Q182

The type of process loss that should not affect the cost of inventory value is _________.

A.
abnormal loss
Answer
B.
normal loss
C.
seasonal loss
D.
standard loss

Answer: Option A

Solution

Answer: Option A
Solution:
The type of process loss that should not affect the cost of inventory value is abnormal loss. Generally, an abnormal loss occurs because of negligence, carelessness, theft, mischief, fraud of employees, or inefficiency.