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    Question

    A process receives 200 units input. Normal loss is 10%.

    Actual output = 150 units. What is the abnormal loss?
    A 20 units Correct Answer Incorrect Answer
    B 25 units Correct Answer Incorrect Answer
    C 30 units Correct Answer Incorrect Answer
    D 35 units Correct Answer Incorrect Answer
    E 40 units Correct Answer Incorrect Answer

    Solution

    • Input = 200 units • Normal loss = 10% of 200 = 20 units • Expected output = 200 − 20 = 180 units • Actual output = 150 units → total loss = 200 − 150 = 50 units • Abnormal loss = 50 − 20 = 30 units  Abnormal loss is recorded separately in Costing P&L, not absorbed into product cost.

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