An abnormal gain in a process occurs in which of the following situations?

Related MCQs

• The disposal cost of abnormal loss is included in the abnormal loss account and therefore in the transfer of the cost of abnormal loss to the statement of profit or loss.
• When the abnormal has a scrape value the net cost of abnormal loss (cost of abnormal loss minus its scrap value) is then transferred as a cost to the cost accounting income statement at the end of the accounting period.
• It is possible to have abnormal loss and abnormal gain on the same process account in the same period.
• If it is assumed that all losses in process occur at the end of the process, units of abnormal loss are costed in exactly the same way in the as units of finished output.
• In some cases, a company might have to pay to dispose of losses in a process. The cost of disposal represents an additional cost to the process. To reflect this in the process account the normal loss is measured at zero but the expected costs of disposal are debited to the process account.
• The difference between total actual loss and normal loss is abnormal loss.
• The cost of abnormal loss is built into inventory.
• The cost of units of abnormal loss is treated as an _________ for the period, and charged as an ___________for the period
• Abnormal loss comes with:
• Where process scrap is recycled for use in conjunction with new material as well as being so externally, which of. the following is most likely to be the value at which is debited to the process?