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    Question

    A company transfers semi-finished goods from Process 1

    to Process 2. Normal loss in Process 1 is 10%. If 10,000 units are input and 8,800 units are transferred, what is the abnormal loss/gain?
    A 200 units abnormal gain Correct Answer Incorrect Answer
    B 1,200 units abnormal loss Correct Answer Incorrect Answer
    C 1,000 units abnormal loss Correct Answer Incorrect Answer
    D 200 units abnormal loss Correct Answer Incorrect Answer

    Solution

    Normal loss = 10% of 10,000 = 1,000 ⇒ Expected output = 9,000 units. Actual = 8,800 ⇒ Abnormal loss = 200 units

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