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Subject - Accounting:

Cost and Management Accounting

MCQ - 185-187

Question:

What will be the impact of normal loss on the overall per unit cost?

  1. Per unit cost will increase
  2. Per unit cost will decrease
  3. Per unit cost remain unchanged
  4. Per unit cost will decrease

Correct Answer: A

Explanation:

Such a loss is inherent in manufacturing operations and cannot be avoided, for this reason; cost of normal loss is absorbed by the units produced. It has the affect of increasing unit cost of good output. Total cost of the department is not divided by all units processed, instead. It is divided only by the good units produced

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355 MCQ for effective preparation of the test of Cost and Management Accounting of Accounting section.

Read the MCQ statement: What will be the impact of normal loss on the overall per unit cost? , keenly and apply the method you have learn through the video lessons for Cost and Management Accounting to give the answer. Record your answer and check its correct answer and video explanation for MCQ No. 185-187.

How to Answer

Solve the question for MCQ No. and decide which option (A through D/E) is the best choice to answer the MCQ, then click/tap the blue button to view the correct answer and it explanation.

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