Which of the Statements Below Is Not Correct

question 6

Multiple Choice

Which of the statements below is not correct?

• A)Normal spoilage is spoilage that occurs under efficient operating conditions.
• B)Normal spoilage is controllable in the short term and considered a part of product cost.
• C)Abnormal spoilage is spoilage in excess of that expected under efficient operating conditions.
• D)Abnormal spoilage is charged as a loss to operations in the period detected.

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Definitions:

Consumption

Pertains to the aggregate volume of products and services that are purchased and consumed by families and people.

MPC

The marginal propensity to consume, which is the fraction of additional income that a household spends on consumption.

Disposable Income

Financially viable resources for households' spending and saving strategies after deducting income taxes.

Consumption

The action of using up a resource or the purchase of goods and services by households.