Correct Answer:
B. Loss in excess of the normal loss, charged to the costing profit and loss account
Abnormal loss is excess loss and is written off separately so that it does not distort unit cost.
November 13, 2026 · Accounting and Finance MCQs, Cost & Management Accounting MCQs
Abnormal loss is:
Related MCQs
Horizontal distribution under the NFC award refers to the sharing of resources:
A.
Between the Federation and the provinces
B.
Between public and private sectors
C.
Among the provinces
D.
Between rural and urban areas only
Correct answer is:
C. Among the provinces
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If the marginal propensity to consume (MPC) is 0.8, the simple expenditure multiplier is:
A.
5
B.
1.25
C.
0.8
D.
0.2
Correct answer is:
A. 5
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A Drawing and Disbursing Officer (DDO) is an officer who:
A.
Audits the accounts of a department
B.
Prepares the national budget
C.
Collects customs duty
D.
Draws money from the treasury or bank on bills and disburses it
Correct answer is:
D. Draws money from the treasury or bank on bills and disburses it
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Actual price is Rs. 12, standard price is Rs. 10 and 500 units were purchased. The material price variance is:
A.
Rs. 1,000 adverse
B.
Rs. 1,000 favorable
C.
Rs. 5,000 adverse
D.
Rs. 600 adverse
Correct answer is:
A. Rs. 1,000 adverse
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An audit to determine whether an entity has followed applicable laws, rules and regulations is called a:
A.
Statutory audit of cash only
B.
Compliance audit
C.
Forensic valuation
D.
Payroll review
Correct answer is:
B. Compliance audit
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A management representation letter:
A.
Is written confirmation from management that supports other audit evidence but cannot replace it
B.
Is enough evidence on its own for any assertion
C.
Is issued by the auditor to the shareholders
D.
Is needed only for sole proprietorships
Correct answer is:
A. Is written confirmation from management that supports other audit evidence but cannot replace it
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