Question

the normal or standard loss jn processing departments is generally considered : ___​

Answer 1

Answer:

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c ) Standard cost d) Differential cost . 3 Unit cost is equal to ... 8 In process costing each producing department is a ... 9 The impact of normal loss on the overall per unit cost ______ .

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Answer 2

Your question is incomplete. Please check below the full content.

The normal or standard loss in processing department is generally considered

a) An Avoidable loss

b) An unavoidable loss

c) An additional loss

d) A basic loss

Answer:

The correct option is (b) An Unavoidable loss.

Explanation:

The term "normal loss" refers to an inherited and unavoidable loss. These will occur in any condition. These can be reduced but can not be eliminated. It should be taken into account when determining the closing stock's value.

For example: loss due to evaporation in case of ethanol, loss due to leakage in case of liquids, loss of goods in transit etc.

When there is a normal loss, the cost per unit is calculated as follows-

Cost per unit = ( total cost + expenses incurred) / ( total quantity – normal loss)

Hence, we can conclude that a standard or a normal loss is an Unavoidable loss.

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