Question

Another name given to abnormal loss is __________.

• A. abnormal loss
• B. normal loss
• C. avoidable loss
• D. insurable loss

Answer 1

The correct option is D insurable loss

Normal loss occur during process of production which is an unavoidable and uncontrollable loss.

Loss which is over and above the normal loss is an abnormal loss. These losses can be controlled hence is an insurable loss.