Shrinkage should be treated as
a. defective units.
b. spoiled units.
c. miscellaneous expense.
d. a reduction of overhead.
B
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A. legal but unethical B. illegal and unethical C. legal and ethical D. illegal but ethical
First Banc loaned money to Best Batteries for the purchase of its factory. First Banc took a mortgage on the factory and land. Best Batteries, because the price of its lifetime battery was so high, went out of business within 18 months. Best deeded the title to the factory and land back to First Banc. When First Banc sent in a clean-up firm, it discovered that there were old and new batteries
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