in the cost sheet abnormal costs e.g. due to accident shall be
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Abnormal cost is a cost which is not normally incurred at a given level of output in the conditions in which that level of output is normally obtained. ( Example: destruction due to fire; lockout; shut down of machinery etc.) Abnormal Gain is when actual loss is less than estimated loss
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Ignored
Explanation:
Abnormal Cost
Abnormal cost are the costs which occurred due to abnormal or unusual manners and doesn't incurred due to abnormal situations of the operations or productions. Ex: shutdown of machinery, destruction by fire etc. The cost of abnormal loss does not add to the cost of production and it is charged to a separate account called costing profit and loss account.
Now, in the cost sheet abnormal costs e.g. due to accident shall be ignored.
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