Material losses due to abnormal reasons should be transferred to __________.

Profit and Loss Account

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Costing Profit and Loss Account

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Trading Acount

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None of the Above

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Solution

The correct option is C Costing Profit and Loss Account
Wastage can be classified as normal waste and abnormal waste.
There is a part of input which constitutes as waste in the normal course of production. This kind of waste is considered as normal waste.
Over and above the normal waste, that is called as abnormal waste, the value of which should be recorded in costing profit & loss account.

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