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The following data for last month relate to a production process in which no work-in-progress is held:
Input 12,800 litres
Normal loss 4% of input
Output 12,500 litresWhat was the abnormal loss or abnormal gain for last month?
it says in my practice question that the answer is an Abnormal gain of 212 liters.
But is it correct that they got it by, 4%*12800 = 512
12800-512= 12288
output = 12500 – 12288 = 212 which is a gain right?You can get the same answer two ways.
Either the way that you have typed, or alternatively (and for me, easier!) is to say that the normal (expected) loss is 4% x 12,800 = 512.
The actual loss is only 12,800 – 12,500 = 300.
So there is an abnormal gain of the difference of 212 (because the actual loss is less than expected).
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