Question

Write short notes on Abnormal Loss and Normal loss.

Answer 1

Therefore, abnormal loss is also called an avoidable loss. The value of anabnormal loss is assessed on the basis of the production cost with which the profit and loss account is charged.Value of abnormal loss = (Normal cost of normal output/Normaloutput) X Abnormal loss qty.

Answer 2

An abnormal loss refers to a situation where a business or firm is making profits below the normal limits. In an abnormal loss situation