CA Inter P4 · Chapter 9 · Question 9 of 11
In process costing, units of abnormal loss are valued at:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) The same cost per unit as good output, computed after adjusting for normal loss
Explanation
Abnormal loss is avoidable, so it is charged with the full cost per unit that good units bear (cost net of normal loss scrap divided by normal output). This prevents abnormal inefficiency from inflating the cost of good output. The value is then credited to the process and transferred to the Abnormal Loss Account.
More Process and Operation Costing MCQs
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