{"id":51494,"date":"2024-04-15T23:25:38","date_gmt":"2024-04-15T23:25:38","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=51494"},"modified":"2024-04-15T23:25:38","modified_gmt":"2024-04-15T23:25:38","slug":"sale-of-defectives-is-reduced-from-________","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/sale-of-defectives-is-reduced-from-________\/","title":{"rendered":"Sale of defectives is reduced from ________."},"content":{"rendered":"<p>[amp_mcq option1=&#8221;prime cost&#8221; option2=&#8221;works cost&#8221; option3=&#8221;cost of production&#8221; option4=&#8221;cost of sales&#8221; correct=&#8221;option4&#8243;]<!--more--><\/p>\n<p>The correct answer is: <strong>D. cost of sales<\/strong>.<\/p>\n<ul>\n<li><strong>Prime cost<\/strong> is the sum of direct materials and direct labor costs.<\/li>\n<li><strong>Works cost<\/strong> is the sum of prime cost and factory overhead costs.<\/li>\n<li><strong>Cost of production<\/strong> is the sum of works cost and other costs incurred in bringing the product to the point of sale, such as selling and administrative expenses.<\/li>\n<li><strong>Cost of sales<\/strong> is the net amount of revenue received from the sale of goods or services, less the cost of those goods or services sold.<\/li>\n<\/ul>\n<p>Sale of defectives is reduced from cost of sales because the defective products are not sold and therefore do not generate revenue. The cost of the defective products is included in cost of goods sold, which is then deducted from revenue to arrive at gross profit.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;prime cost&#8221; option2=&#8221;works cost&#8221; option3=&#8221;cost of production&#8221; option4=&#8221;cost of sales&#8221; correct=&#8221;option4&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"class_list":["post-51494","post","type-post","status-publish","format-standard","hentry","category-costing","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Sale of defectives is reduced from ________.<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/sale-of-defectives-is-reduced-from-________\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Sale of defectives is reduced from ________.\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;prime cost&#8221; 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