When actual loss exceeds normal loss, there is:

Related MCQs

• The difference between total actual loss and normal loss is abnormal loss.
• When actual loss is less than the expected (normal) loss there is:
• 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.
• If the amount of production overheads absorbed into product costs is more than the actual production overhead expenditure, there is:
• 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.
• Normal loss comes with:
• If the normal loss has no scrap value it is given a nil value.
• 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.