unit
period
future
process
Answer is Right!
Answer is Wrong!
The correct answer is: B. period
Abnormal losses are losses that are not expected to occur in the normal course of business. They are usually caused by unusual circumstances, such as a natural disaster or a machine breakdown. Abnormal losses are not included in the cost of goods sold, but are instead written off to the profit and loss account in the period in which they occur.
The other options are incorrect because:
- Option A, unit cost, is the cost of producing one unit of product. Abnormal losses are not included in unit cost.
- Option C, future cost, is the cost of producing products in the future. Abnormal losses are not costs of future products.
- Option D, process cost, is the cost of producing a product through a series of steps. Abnormal losses are not included in process cost.
I hope this helps! Let me know if you have any other questions.