This document discusses abnormal loss and abnormal gain. Abnormal loss is controllable loss that occurs due to mishandling or leakage, while abnormal gain is the opposite and occurs when efficiency is higher than expected. Abnormal loss is calculated as the number of abnormal loss units multiplied by the cost per normal unit. Abnormal gain is accounted similarly. Abnormally lost units are a financial loss, while abnormal gain increases profits by the value of extra units produced. Calculating abnormal loss and gain helps organizations increase efficiency and productivity.
The matter includes concept and types of Working Capital. Further it explains Optimum Level of Current Assets, Various Approaches to Working Capital Financing. Then Operating Cycle, Cash Cycle and Working Capital Estimation Techniques are discussed.
The matter includes concept and types of Working Capital. Further it explains Optimum Level of Current Assets, Various Approaches to Working Capital Financing. Then Operating Cycle, Cash Cycle and Working Capital Estimation Techniques are discussed.
Meaning
Types of working capital
Factors of determining working capital
Operating working capital cycle
Importance of operating cycle concept
Internal factors
External factors
General factors
Types of capital structure
Characteristics of security
Equivalent production in Cost Accounting Sanjeet Yadav
The above slide covers meaning, definition, methods of calculation of Work in Progress (FIFO, LIFO and average cost methods) and procedure of valuation of work in progress in Equivalent production (Concept of Cost Accounting).
Meaning
Types of working capital
Factors of determining working capital
Operating working capital cycle
Importance of operating cycle concept
Internal factors
External factors
General factors
Types of capital structure
Characteristics of security
Equivalent production in Cost Accounting Sanjeet Yadav
The above slide covers meaning, definition, methods of calculation of Work in Progress (FIFO, LIFO and average cost methods) and procedure of valuation of work in progress in Equivalent production (Concept of Cost Accounting).
What is job costing? What are its main characteristics?
Characteristics
Features
procedure involve in job order costing.
Applicability
What is BEP? List out the assumption of breakeven analysis
Assumption of BEP analysis
What is Profit Volume (P/V) Ratio
What is CVP analysis? How does it help the management?
What is process costing? What are its main characteristics? Name the industries where process costing can be applied.
Normal Loss
Abnormal Loss
Abnormal Gain
Job Costing & Process Costing
Accounting for losses in process costing
What do you mean by operating costing? Draw a specimen cost sheet for transport costing.
INDUSTRY AND CORRESPONDING COST UNIT
RECONCILIATION STATEMENT
A breakeven analysis is used to determine how much sales volume your business needs to start making a profit.
The breakeven analysis is especially useful when you're developing a pricing strategy, either as part of a marketing plan or a business plan.
Students should be able to:
Understand the distinction between normal and supernormal profit
Explain and illustrate the concept of profit maximisation using marginal cost and marginal revenue
This power point presentation related to process costing. which is useful to students who studying B.com, BBA,M.COM MBA etc.
It involves short notes on definition of process costing,its features,applications,difference between process costing and job costing, advantages and disadvantageous of process costing, procedure of process costing,format of process account, process losses and abnormal gain.
Some basic information about depreciation is given with its features, some methods of its calculation of depreciation with examples are provided.
I tried my best to explain this much to you.
Thank you so much.
A review of the growth of the Israel Genealogy Research Association Database Collection for the last 12 months. Our collection is now passed the 3 million mark and still growing. See which archives have contributed the most. See the different types of records we have, and which years have had records added. You can also see what we have for the future.
Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
Objective:
Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
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This slide is special for master students (MIBS & MIFB) in UUM. Also useful for readers who are interested in the topic of contemporary Islamic banking.
A workshop hosted by the South African Journal of Science aimed at postgraduate students and early career researchers with little or no experience in writing and publishing journal articles.
How to Build a Module in Odoo 17 Using the Scaffold MethodCeline George
Odoo provides an option for creating a module by using a single line command. By using this command the user can make a whole structure of a module. It is very easy for a beginner to make a module. There is no need to make each file manually. This slide will show how to create a module using the scaffold method.
Thinking of getting a dog? Be aware that breeds like Pit Bulls, Rottweilers, and German Shepherds can be loyal and dangerous. Proper training and socialization are crucial to preventing aggressive behaviors. Ensure safety by understanding their needs and always supervising interactions. Stay safe, and enjoy your furry friends!
This presentation includes basic of PCOS their pathology and treatment and also Ayurveda correlation of PCOS and Ayurvedic line of treatment mentioned in classics.
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
2024.06.01 Introducing a competency framework for languag learning materials ...
Abnormal loss gain
1. ABNORMAL LOSS &ABNORMAL GAIN
Omkar Pradeep Phutane
(Roll no. 24)
WHAT IS ABNORMAL LOSS & ABNORMAL GAIN?
Imagine that a tank is filled with some chemical. This chemical has a tendency to evaporate at
the rate of 10ml every hour. This evaporation loss is NORMAL LOSS. This loss is inevitable &cannot be
controlled due to physical/ chemical properties. But if there is mishandling or leakage in the tank then
any amount of chemical would be wasted. This is obviously controllable. If such loss occurs then it is
ABNORMAL LOSS however, if the loss is less thananticipated then it is ABNORMAL GAIN. In other
wordsabnormal gain is opposite of abnormal loss.
Normal wastage arises out of breakage, evaporation, deterioration, shrinkage, etc. whereas,
Abnormal wastage occurs because of an avoidable or abnormal reason.On the other hand, abnormal
gain arises because of an abnormal efficiency in the performance or use of raw material. Thus abnormal
gain or abnormal effective will reduce the normal loss.
HOW TO CALCULATE?
Abnormal loss = (No. of units of abnormal loss * per unit cost of normal output)
Abnormal gain = (No. of units of abnormal gain * per unit cost of normal output)
ACCOUNTING TREATMENT
Abnormal Loss: Loss due to the abnormal wastage should not be treated as a part of the
manufacturing cost but must be regarded as a financial loss in no way connected with manufacturing.
Such abnormal wastage minus realization from sale of wasted units must be charged to profit and loss
account.
Abnormal Gain: The process account under which abnormal gain arises is debited with the
abnormal gain and credited to the abnormal gain account which is closed by transferring to the costing
profit and loss account.
IMPORTANCE
Organizations can increase their efficiency by calculating and reducing abnormal loss, as we know
that it’s avoidable or controllable.
Abnormal gain is a sign of efficient business. It shows that all resources are utilized very
efficiently.
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2. EXAMPLE
Question In a process 3000 units @ Rs. 9 per unit are issued. The normal loss is 10% of the units
introduced. The actual output of the said process is 2820 units. The sale price of the normal loss is Rs. 3
per unit.
Answer
Units introduced = 3000 units
Less normal loss @ 10% = 300 units
Normal output = 2700 units
The actual output in this process is 2820 units which is (2820- 2700) = 120 units more than the expected
or normal output. Hence these 120 units will be known as abnormal gain (if actual output is less than
expected or normal output then, it’s called as abnormal loss).
Cost of abnormal gain: The cost calculation is important as the benefit of this extra efficiency
should not be absorbed in the process but it should be separately accounted for, and hence the profit
due to abnormal gain should be credited to costing profit and loss account.
Normal cost of the normal output
Cost of abnormal gain = * Abnormal gain (in units)
Normal output
Normal cost of the normal output = (cost – Sale value of normal loss)
= (3000*9 – 300*3)
= 26100
So, cost of abnormal gain = (26100/ 2700)* 120 = 1160
Amount to be taken to profit and loss account
Abnormal gain = 1160
Sale price of the abnormal gain (120*3) = 360
Gain due to abnormal = 800
Note: Calculation is same for the abnormal loss.
THANK YOU
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