If the normal loss has no scrap value it is given a nil value.

Related MCQs

• If normal loss has a scrap value the company is able to recover some of the input costs to the process. The scrap value reduces the cost of the process.
• 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.
• The difference between total actual loss and normal loss is abnormal loss.
• 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.
• Normal loss is ___________in the normal course of events. It is inherent in the physical and chemical reactions that take place in a process.
• When actual loss exceeds normal loss, there is:
• When actual loss is less than the expected (normal) loss there is:
• 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?
• Normal loss is usually expressed as a percentage of the input units of materials.
• The normal loss is something that is unavoidable in order to get the good output. The cost of the lost units is part of the cost of obtaining the good output.