Question

Give one difference between normal cost and abnormal cost.

Distinguish between:

Normal cost and abnormal cost.

Answer 1

Basis of Distinction	Normal cost	Abnormal cost
lncurrence	The normal cost is the cost that is normally incurred at a given level of output.	Abnormal cost is the cost that is not normally incurred at a given level of output in the conditions in which that level of output is normally attained.
Charging	Charged to the cost of production.	Charged to profit and loss account.