CA Inter P4 · Chapter 8 · Question 9 of 9
The cost of rectifying normal defective work which cannot be identified with any particular job should be treated as:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Production overhead
Explanation
If defectives are normal and cannot be traced to a specific job, the rectification cost is treated as production overhead and absorbed by all jobs. If traceable to a specific job, it is charged to that job; abnormal defectives are charged to the Costing Profit and Loss Account.
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