The difference between total actual loss and normal loss is abnormal loss.

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.
• When actual loss exceeds normal loss, there is:
• When actual loss is less than the expected (normal) loss there is:
• Normal loss is ___________in the normal course of events. It is inherent in the physical and chemical reactions that take place in a process.
• The cost of units of abnormal loss is treated as an _________ for the period, and charged as an ___________for the 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.
• The cost of abnormal loss is built into inventory.
• Abnormal loss comes with: