CAF-5 · Chapter 7 · Question 6 of 10
If the actual loss in a manufacturing process is less than the expected normal loss, the resulting difference is known as:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Abnormal gain
Explanation
An abnormal gain arises when the actual loss in a process is less than the expected normal loss, resulting in more good output than anticipated.
More Process Costing MCQs
- Q8When applying the Weighted Average method of process costing, how is the cost per equivalent unit calculated?
- Q9In a continuous process where direct materials are added completely at the very beginning of the process, what is the degree of completion…
- Q10How is the cost of finished goods calculated to be transferred out of a process account?
- Q1Process costing is most appropriate for which of the following types of manufacturing environments?
- Q2How is the scrap value of a "Normal Loss" treated when calculating the cost per equivalent unit of good output?