Question

How will you treat the Cost of
rectify Normal Defective Works?
*
O It should be ignored
it should be included in the
O
Prime Cost
It should be included in the
O
Factory Overheads
It should be included in the
O
Administrative Overheads​

Answer 1

Answer:

If the defective production is not identified with a particular job or department, the cost of rectification is added to general factory overhead. 3. If the defective production is due to abnormal reasons, the rectification cost is transferred to Costing Profit and Loss Account.

Answer 2

Answer:

How will you treat the Cost of

rectify Normal Defective Works?

*

O It should be ignored

it should be included in the

O

Prime Cost

It should be included in the

O

Factory Overheads

It should be included in the

O

Administrative Overheads