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Commerce · Q154

Costing

Graduate and Post Graduate · Commerce · question 154

Q154

100 units are introduced in a process in which normal loss is 5% of input If actual output is 97 then there is ________.

A.
no abnormal loss and normal gain
B.
2 units of abnormal gain
Answer
C.
3 units of abnormal gain
D.
3 units of normal loss

Answer: Option B

Solution

Answer: Option B
Solution:
100 units are introduced in a process in which normal loss is 5% of input If actual output is 97 then there is 2 units of abnormal gain.