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Commerce · Q156

Costing

Graduate and Post Graduate · Commerce · question 156

Q156

Abnormal process loss can be transferred to ________.

A.
costing profit and loss a/c
Answer
B.
financial profit and loss a/c
C.
manufacturing
D.
trading

Answer: Option A

Solution

Answer: Option A
Solution:
Abnormal process loss can be transferred to costing profit and loss a/c. Process account is to be credited by abnormal loss account with cost of material, labour and overhead equivalent to good units and the loss due to abnormal is transferred to Costing Profit and Loss Account.