The cost of abnormal losses (net of disposal costs) should be written off as

Question

Quizplus · Accepted Answer

Abnormal losses are losses that occur due to unexpected or unusual events such as theft, fire, or natural disasters. These losses are not part of normal business operations and therefore should not be included in the cost of products or services. Instead, they should be recognized as a separate expense on the income statement. As per the given question, the cost of abnormal losses (net of disposal costs) should be written off, which means it should be recognized as an expense and not included in the cost of goods sold. Therefore, the answer is C - no for the first option and yes for the second option.

The Cost of Abnormal Losses (Net of Disposal Costs) Should