The correct answer is: B. normal
Normal process loss is the amount of loss that is expected to occur in the normal course of production. It is not considered to be a defect, and the cost of normal process loss is absorbed in the cost of production of good units.
Abnormal process loss is the amount of loss that is greater than the normal amount of loss that is expected to occur in the normal course of production. It is considered to be a defect, and the cost of abnormal process loss is charged to expense.
Here is a table that summarizes the key differences between normal and abnormal process loss:
| Characteristic | Normal process loss | Abnormal process loss |
| — | — | — |
| Definition | The amount of loss that is expected to occur in the normal course of production. | The amount of loss that is greater than the normal amount of loss that is expected to occur in the normal course of production. |
| Treatment | The cost of normal process loss is absorbed in the cost of production of good units. | The cost of abnormal process loss is charged to expense. |
| Examples | Scrap material that is generated as a result of the normal manufacturing process. | Scrap material that is generated as a result of a machine breakdown. |
I hope this helps! Let me know if you have any other questions.