Q.One of the following expenses which is not included in cost is

Scrap has small value without further processing — option (a).

In the Material Loss topic, scrap is the incidental residue of the production process (metal turnings, off-cuts, trimmings). Its defining feature is that it carries a SMALL realisable value that can be recovered simply by selling it as it is — no further processing is required.

• (b) "big value" is wrong — scrap value is small/minor.
• (c) "no realisable value" describes waste, not scrap. …

Discarded material that still fetches some value = Scrap.

Forms of material loss differ by whether any value is recoverable:

• Scrap — incidental residue/discarded substances from manufacture that have a small realisable value (e.g. metal turnings, trimmings). This matches the question exactly. …

Much material wastage happens during handling/issue, so proper steps at the issuing stage prevent most of it — option (c).

In this CHSE Odisha +2 Cost Accounting topic, material losses (wastage, spoilage, deterioration) often arise when materials are handled and issued from stores in wrong quantities, without proper requisition, or in improper order. Controlling the issue of mate …

Abnormal wastage of materials is excluded from cost — option (c).

A basic principle of cost accounting is that only normal, expected costs enter the cost of a product; abnormal items are kept out and charged to the Costing Profit & Loss Account so that unit cost is not distorted.

Spoilage is output that is so defective it cannot be economically rectified and is disposed of as scrap.

Spoilage refers to goods or units that are damaged or fall below acceptable quality during manufacture to such an extent that they cannot be brought up to standard by further work at a reasonable cost. Such units are discarded or sold for whatever low value they fetch. Normal spoilage is absorbed by good production; abnormal spoilage is charged …

The one-word answer is Waste.

In the material-loss topic, losses are classified as waste, scrap, spoilage and defectives. Waste is the portion of raw material lost during processing (through evaporation, shrinkage, chemical reaction, etc.) that has no measurable recovery or sale value — unlike scrap, which is residue with some realisable valu …