Normal losses that occur in the manufacturing process are properly classified as:
A)Extraordinary items.
B)Product costs.
C)Period costs.
D)Deferred charges.

Question

Quizplus · Accepted Answer

Normal losses that occur in the manufacturing process are considered part of the cost of producing goods, hence they are classified as product costs. These costs are allocated to the cost of goods sold and are included in the inventory valuation until the product is sold.

Normal Losses That Occur in the Manufacturing Process Are Properly