100 units are introduced in a process in which normal loss is 5% of input If actual output is 97 then there is ________.
A. no abnormal loss and normal gain
B. 2 units of abnormal gain
C. 3 units of abnormal gain
D. 3 units of normal loss
Answer: Option B
Solution(By Examveda Team)
100 units are introduced in a process in which normal loss is 5% of input If actual output is 97 then there is 2 units of abnormal gain.Join The Discussion
Comments ( 1 )
Related Questions on Costing
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
100-(100*5%)=95, actual out put=97,
then 97-95=2 is abnormal gain