Abnormal gain

Abnormal gain is the extra good output a process produces when actual losses come in below the normal loss allowance, valued at the normal cost per unit and credited to the process account.

ByHoang TruongUpdated July 11, 2026

See it move

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A process takes 800 kg of input costing €7,200. Normal loss of 80 kg leaves an expected output of 720 kg, so the cost per unit is €7,200 ÷ 720, or €10. Actual output comes in at 750 kg, 30 kg above expectation, so that 30 kg abnormal gain is valued at 30 times €10, or €300, and credited to the process account.

Where it fits

SubjectCost AccountingCoreTopicJob & Process CostingCoreTopicJoint Products, By-Products & SpoilageCore

The formula

LaTeX

c = \frac{TC}{I - L}

Variables

$c$: Cost per normal unit (€)
$T C$: Total process cost (€)
$I$: Input units (units)
$L$: Normal loss units (units)

Sets the rate used to value both normal good output and any abnormal gain or loss.

LaTeX

AG = \left(A - (I - L)\right) \times c

Variables

$A G$: Abnormal gain value (€)
$A$: Actual output (units)
$I$: Input units (units)
$L$: Normal loss units (units)
$c$: Cost per normal unit (€)

Values the extra good output produced above the normal-loss-adjusted expectation.

Check yourself

PracticeCORE

A process starts with 600 kg of input costing €6,120 to process. Normal loss is 15% of input, assumed to have no scrap value. Actual output for the period is 530 kg. What is the value of the abnormal gain?

Select an answer to check your understanding.