Vishal Varun (Student) (648 Points)
03 December 2014Where in a process Abnormal effective/gain is formed.
Why that abnormal gain is not transfer to the next process.
what actually happens in the industry/Factory ???
SHUBHAM GARG
(Student CA Final)
(122 Points)
Replied 03 December 2014
Hello Vishal Varun,
Abnormal effectives are formed, when actual units produced are more than expected production or actual loss is less than normal loss.
Example: Input=1000 units, Normal loss=5% of input, output=9970 units,
In this case , expected production = 1000-5%*(1000) =9950 units.
actual production = 9970 units.
abnormal effectives = 9970-9950= 20 units.
Regarding your second question, abnormal gains are always transferred to next process.
Please elaborate your third query.
Vishal Varun
(Student)
(648 Points)
Replied 03 December 2014
ok Thanx Dear
I got the Point . My all Queries Regarding this Cleared .
Thank you so Much......
CAclubindia
