In process costing the abnormal loss occurred in a production department is
A)Charged to finished goods
B)Charged to unfinished goods
C)Charged to factory overhead
D)Ignored

Question

Quizplus · Accepted Answer

In process costing, abnormal losses are not considered a part of the normal production cost. Instead, they are treated as non-standard or exceptional costs and are typically charged to factory overhead. This approach helps in identifying and controlling such losses separately from the regular production costs.

In Process Costing the Abnormal Loss Occurred in a Production