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Explain the difference between 'Abnormal loss' and 'Abnormal gain' in process costing?

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Question added by Frank Mwansa , ACCOUNTING LECTURER , FREELANCER
Date Posted: 2016/01/30
Ahmed Abdul Ghaffar
by Ahmed Abdul Ghaffar , Manager Accounts , Alkaram Textile Mills Pvt Ltd

Normal loss is the expected loss in a process. Normal gain is the expected gain in a process. If the loss or the gain in a process is different to what we are expecting (i.e. differs from the normal loss or gain), then we have an abnormal loss or an abnormal gain in the process.

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