Material losses due to abnormal reasons should be transferred to
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If the defective production is due to abnormal reasons, the rectification cost is transferred to Costing Profit and Loss Account. Every possible effort should be made to reduce the number of defectives because they increase the cost of production.
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Explanation:
If the defective production is due to abnormal reasons, the rectification cost is transferred to Costing Profit and Loss Account. Every possible effort should be made to reduce the number of defectives because they increase the cost of production
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