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    Question

    In process costing, the cost of normal loss

    is:
    A Charged to the costing Profit & Loss A/c Correct Answer Incorrect Answer
    B Absorbed by the good units produced Correct Answer Incorrect Answer
    C Carried forward as an asset Correct Answer Incorrect Answer
    D Ignored completely Correct Answer Incorrect Answer
    E Charged to the customer Correct Answer Incorrect Answer

    Solution

    Normal loss is an unavoidable loss inherent in the production process. Its cost is not treated separately but is absorbed by the good units produced. This increases the cost per unit of the good output.

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