In process costing, abnormal effectives would arise if —

CS Executive · Cost and Management Accounting · PYQS · June 2016
In process costing, abnormal effectives would arise if —
(A) Actual units lost during the process were more than the normal loss
(B) Closing stock at end of the period was higher than opening stock
(C) Actual units lost during the process were less than the normal loss
(D) Estimate of cost per unit was below the actual cost per unit of output.

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Process Costing

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