diffrence between normal loss and abnormal losss in hindi
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Abnormal Loss
Normal and abnormal loss concept are associated with processing costing.
Normal Loss
Normal loss is a loss which is very much expected in the industry. This is inherent loss of the industry and it cannot be avoided. Normal loss represents the practice environments where all input cannot be perfectly equal to the output. Normal loss varies from industry to industry.
Normal loss is not valued in the process costing and value of normal loss is adjusted in output i.e. normal loss is born by the output.
Abnormal Loss
Abnormal loss is a loss which is over and above the normal loss. Abnormal loss is specifically tracked in process costing to investigate the reason and appropriate control.
Abnormal loss is valued and separately charged unlike normal loss it is not adjusted against output rather a spate account of abnormal loss is opened to account for abnormal loss
Normal and abnormal loss concept are associated with processing costing.
Normal Loss
Normal loss is a loss which is very much expected in the industry. This is inherent loss of the industry and it cannot be avoided. Normal loss represents the practice environments where all input cannot be perfectly equal to the output. Normal loss varies from industry to industry.
Normal loss is not valued in the process costing and value of normal loss is adjusted in output i.e. normal loss is born by the output.
Abnormal Loss
Abnormal loss is a loss which is over and above the normal loss. Abnormal loss is specifically tracked in process costing to investigate the reason and appropriate control.
Abnormal loss is valued and separately charged unlike normal loss it is not adjusted against output rather a spate account of abnormal loss is opened to account for abnormal loss
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