The cost of abnormal losses (net of disposal costs)should be written off as
$\text {\underline{Product cost} }$ $\text {\underline{ Period cost} }$

Question

The cost of abnormal losses (net of disposal costs)should be written off as
$\text {\underline{Product cost} }$                  $\text {\underline{ Period cost} }$

Quizplus · Accepted Answer

Abnormal losses are not considered a normal part of production or that can be controlled, so the cost should be expensed as a period cost rather than included in the cost of the product. Hence the cost of abnormal losses (net of disposal costs) should be written off as period cost only.

The Cost of Abnormal Losses (Net of Disposal Costs)should Be Product cost‾ \text {\underline{Product cost} }Product cost​

The Cost of Abnormal Losses (Net of Disposal Costs)should Be $\text {\underline{Product cost} }$