In a manufacturing entity, the cost of abnormal waste

is:

A Added to closing inventory Correct Answer Incorrect Answer

B Deferred to next period Correct Answer Incorrect Answer

C Charged to Cost of Goods Sold Correct Answer Incorrect Answer

D Capitalized Correct Answer Incorrect Answer

E Expensed in P&L Correct Answer Incorrect Answer

Solution

Abnormal waste is charged directly to the Profit and Loss account and not included in inventory cost.

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