Mataracy
VIP Contributor
Normal losses in business is the losses which can not be avoided and there are some losses which are not expected to occur under efficient operating condition, for example the improper mixing of ingredients the use of inferior materials and the incorrect cutting of cloth.
There losses are not an inherent part of the production process and are referred to as ABNORMAL LOSSESS
Since normal losses arise from the nature of the production process, it is therefore logical and equitable that cost of such losses is included as part of the cost of good produced.
There losses are not an inherent part of the production process and are referred to as ABNORMAL LOSSESS
Since normal losses arise from the nature of the production process, it is therefore logical and equitable that cost of such losses is included as part of the cost of good produced.