Question

difference between normal loss and abnormal loss? ​

Answer 1

Normal Losses: Losses which are unavoidable are called Normal losses. Normal losses of material can not be completely avoided but may be controlled to a limited extent .These losses are transferred to factory overheads .Examples of material losses are as follows:

Losses by evaporation

Loss due to loading and unloading

Losses due to breaking the bulk etc.

Abnormal Losses: Losses that arises due to inefficiency in operations, carelessness etc. is called as abnormal losses. These losses are charged to coasting profit and loss account. Examples of abnormal losses are as follows:

Breakage

Fire, accident, flood etc.

Improper storage

Theft