Which one of the following statements is not true?
A) Normal losses are never given a value in the process account.
B) Abnormal losses are never given a value in the process account.
C) Abnormal losses are a credit entry in the process account.
D) Normal losses are a credit entry in the process account.

Question

Quizplus · Accepted Answer

Normal losses are expected and accounted for in the process account as a credit entry, reflecting the cost of these losses as part of the production process. Abnormal losses, however, are not expected in the normal course of production and are given a value in the process account. They are treated as a debit entry, representing an unexpected cost that exceeds the normal loss estimate. Therefore, the statement that abnormal losses are never given a value in the process account is not true.

Which One of the Following Statements Is Not True