An input of 10,000 Kg of material is introduced into the process K. The expected normal loss in that process is 5%. If the actual output from the process is 9,800 Kg, the abnormal gain would be :

CS Executive · Cost and Management Accounting · PYQS · June 2018
An input of 10,000 Kg of material is introduced into the process K. The expected normal loss in that process is 5%. If the actual output from the process is 9,800 Kg, the abnormal gain would be :
(A) 500 Kg
(B) 300 Kg
(C) 700 Kg
(D) 200 Kg

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Cost and Management Accounting

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