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Questions
Give one difference between normal cost and abnormal cost.
Distinguish between:
Normal cost and abnormal cost.
Distinguish Between
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Solution
| 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. |
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Controllable and Uncontrollable Costs
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