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Commerce · Q150

Costing

Graduate and Post Graduate · Commerce · question 150

Q150

Value of normal loss is charged to ________.

A.
other good product
Answer
B.
trading a/c
C.
profit and loss a/c
D.
costing profit and loss a/c

Answer: Option A

Solution

Answer: Option A
Solution:
Value of normal loss is charged to other good product. The value of normal loss is assessed on the basis of the production cost with which the profit and loss account is charged.