COST ACCOUNTING
INTRODUCTION TO COST ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Normal cost of normal output of 80 units is rs.400 then value of abnormal wastage of 5 units will be:
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Rs. 25
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Rs. 100
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Rs. 5
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Rs. 400
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Explanation:
Detailed explanation-1: -Generally the cost of normal loss is absorbed by the cost units. Normal Output = Units introduced – Units of normal loss Normal Cost of Normal Output = Total Cost – Scrap value of Normal Loss.
Detailed explanation-2: -Unit cost is determined by combining the variable costs and fixed costs and dividing by the total number of units produced.
There is 1 question to complete.