Question

_________ process loss should be transferred to costing profit and loss account.

• A. Abnormal
• B. Normal
• C. Both A and B
• D. None of the above

Answer 1

Answer: (A)

Abnormal

In every production process, there are some amount of loss which occurs as a normal loss. These are called as normal losses. Over and above the normal loss, balance units of loss are considered as abnormal loss which should be charged to profit & loss account.