Question

When actual loss is _________ than the estimated loss, the difference between the two is considered to be abnormal loss.

• A. more
• B. less
• C. Both A and B
• D. None of the Above

Answer 1

The correct option is A more

Losses can be defined as normal loss and abnormal loss. A loss which occurs normally during the process of production is called as normal loss. Loss over and above the normal loss is considered as abnormal loss. Abnormal loss should not be charged to production cost.