CAF-5 · Chapter 7 · Question 4 of 10
A production process has an input of 2,000 litres. The normal loss is estimated at 10% of the input. If the actual good output is 1,700 litres, what is the abnormal loss or gain?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) 100 litres Abnormal Loss
Explanation
Input = 2,000 litres. Normal loss = 10% of 2,000 = 200 litres. Expected output = 1,800 litres. Since actual output is 1,700 litres, the difference between expected output (1,800) and actual output (1,700) is a 100-litre Abnormal Loss.
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