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Commerce · Q183

Costing

Graduate and Post Graduate · Commerce · question 183

Q183

If the actual loss is more than the estimated normal loss, then it is _________.

A.
abnormal loss
Answer
B.
normal loss
C.
seasonal loss
D.
abnormal gain

Answer: Option A

Solution

Answer: Option A
Solution:
If the actual loss is more than the estimated normal loss, then it is abnormal loss. Abnormal loss is the extra loss resulting when actual loss is greater than normal or expected loss, and it is given a cost.