Abnormal effective/gain

IPCC 5593 views 2 replies

Where 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 ???

Replies (2)

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. 

ok Thanx Dear

I got the Point . My all Queries Regarding this Cleared .

 

Thank you so Much......enlightened


CCI Pro

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