The cost which SHOULD NOT be charged against revenue in which costs are incurred is d. costs of normal shrinkage and scrap incurred for the manufacture of a product in ending inventory.
This refers to the price of something which is used to produce a particular good and there are different costs.
With this in mind, we can see that when charging against revenue, it is important to add the manufacturing overhead costs, costs from idle manufacturing capacity but adding the costs of normal shrinkage is not needed.
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