Correct Answer:
C. An expected and unavoidable loss that is absorbed by the good units
Normal loss is inherent in the process and its cost is included in the cost of good output.
November 13, 2026 · Accounting and Finance MCQs, Cost & Management Accounting MCQs
Normal loss in a process is:
Related MCQs
Prime cost is the sum of:
A.
Direct materials and factory overhead
B.
Direct labor and factory overhead
C.
Indirect materials and indirect labor
D.
Direct materials, direct labor and direct expenses
Correct answer is:
D. Direct materials, direct labor and direct expenses
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Drawings made by the owner of a sole proprietorship:
A.
Reduce the owner's equity (capital)
B.
Increase the owner's equity
C.
Are recorded as business expenses
D.
Are recorded as revenue
Correct answer is:
A. Reduce the owner's equity (capital)
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The fixed assets register of a government entity records:
A.
Only cash balances
B.
Only tax receipts
C.
Only salaries
D.
Details of its non-current assets such as land, buildings and vehicles
Correct answer is:
D. Details of its non-current assets such as land, buildings and vehicles
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In process costing, the weighted average method:
A.
Keeps opening WIP costs separate from current costs
B.
Ignores opening WIP
C.
Ignores current period costs
D.
Combines the cost of opening WIP with current period costs
Correct answer is:
D. Combines the cost of opening WIP with current period costs
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A disclaimer of opinion is given when the auditor:
A.
Cannot obtain sufficient appropriate audit evidence and the possible effects are material and pervasive
B.
Finds that the financial statements are fairly presented
C.
Wants to avoid doing the audit work
D.
Finds minor errors in the cash book
Correct answer is:
A. Cannot obtain sufficient appropriate audit evidence and the possible effects are material and pervasive
Do you agree with this answer?
Auditor independence consists of:
A.
Independence of audit fees only
B.
Independence from the auditing standards
C.
Independence of mind and independence in appearance
D.
Independence from the audit working papers
Correct answer is:
C. Independence of mind and independence in appearance
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