normal lose is equal to
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★ Normal loss means that loss which is inherent in the processing operations. It can be expected or anticipated in advance i.e. at the time of estimation. Accounting Treatment: If there is no abnormal gain, then there is no necessity to maintain a separate account for normal loss.
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The cost of good output after absorbing the value loss of normal loss units is called the Normal cost. It can be obtained using the following relation. This value is the same as the value that is obtained by adding value loss of normal loss units to the cost of good units.
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