What losses should not affect the recorded cost of inventories?
A)Normal losses
B)Abnormal losses
C)Seasonal losses
D)Standard losses

Question

Quizplus · Accepted Answer

Abnormal losses are not a regular occurrence in the production process or inventory management, and therefore, they should not affect the recorded cost of inventories. Normal, seasonal, and standard losses are considered part of the cost of production or procurement and are anticipated in the costing of inventories.

What Losses Should Not Affect the Recorded Cost of Inventories