Which one of the following statements is false?
A) Abnormal gains arise when the actual losses from a process are lower than expected.
B) Abnormal gains reduce the units of normal losses reported in the process account.
C) Abnormal gains are valued and accounted for separately in the process account.
D) Abnormal gains are valued at the expected cost of normal production.

Question

Quizplus · Accepted Answer

Abnormal gains do not reduce the units of normal losses reported in the process account. Instead, they are treated as additional output and are accounted for separately, showing that the actual losses were less than the anticipated or normal losses.

Which One of the Following Statements Is False