When actual loss is less than the estimated loss the difference between the two is considered t...........

Costing - Phase (I & II) Methods of Costing

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When actual loss is less than the estimated loss, the difference between the two is considered to be……………

Abnormal gain

abnormal loss

normal loss

income

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Explanation:

Abnormal gain arises because of an abnormal effective in the use of raw material or efficiency in performance so it is known as abnormal effective. Abnormal gain reduces the normal loss quantity so it comes in the form of profit to the industry. The value of an abnormal gain is assessed on the basis of production cost