Question
A process receives 200 units input. Normal loss is 10%.
Actual output = 150 units. What is the abnormal loss?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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