Question

______________ is a normal loss.

• A. Loss by theft
• B. Leakage of chemicals in Transit
• C. Fire in godown
• D. Wrong weighment

Answer 1

Answer: (B)

Leakage of chemicals in Transit

Losses can be categorized as normal loss and abnormal loss.

Loss which occurs in the normal course of the business are called as normal loss. This is an unavoidable and uncontrollable loss. The cost of normal loss is directly apportioned to the number of units finally available after the normal loss. Leakage in transit is a normal loss.

Loss which is over and above the normal loss are called abnormal loss. The cost of abnormal loss shall be debited to costing profit & loss account.