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Question

___________ is not an abnormal loss.


A
Evaporation
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B
Loss in Transit
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C
Over issue
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D
Misappropriation by godown keeper
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Solution

The correct option is B Evaporation
The anticipated or expected loss prior to the production is called as normal loss. This may called as standard loss. Weight loss, shrinkage, rusting, evaporation are the example of normal loss. 
Loss which realized over and above the normal loss is called abnormal loss. 
Hence, evaporation is not an abnormal loss.  

Accountancy

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