📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      Question

      A company inputs 300 units into a production process

      where the normal loss is 30%. If the actual output is 190 units, what is the amount of abnormal gain or loss?
      A Abnormal gain of 20 units Correct Answer Incorrect Answer
      B Abnormal gain of 30 units Correct Answer Incorrect Answer
      C No abnormal gain or loss Correct Answer Incorrect Answer
      D Abnormal loss of 20 units Correct Answer Incorrect Answer
      E Abnormal loss of 10 units Correct Answer Incorrect Answer

      Solution

      The normal loss is 30% of 300 units, which equals 90 units. Therefore, the expected output after accounting for a normal loss is 210 units (300 - 90). Since the actual output is 190 units, there is an abnormal loss of 20 units (210 expected units - 190 actual units).

      Practice Next
      More Previous year papers Questions
      ask-question