Abnormal gain is valued at_____
a)cost of output
b)cost of input
c)marginal cost
d)standard cost
Answers
Answer:
Explanation:
Marginal cost
Answer:
If the actual production units exceed the predicted units after subtracting normal loss, the difference is referred to as anomalous gain. It is not included in the total cost, hence it has no effect on the cost per unit of the product.
Explanation:
The rise or reduction in the cost of manufacturing one more item or serving one more client is referred to as marginal cost. It is sometimes referred to as incremental cost.
The amount of anomalous gain is transferred to the debit side of the relevant process before being concluded by crediting it to the Costing Profit and Loss Account. The concepts of normal and abnormal loss are linked to processing costs.
Therefore, the correct option is C) marginal cost.
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