{"id":7246,"date":"2023-06-08T14:53:43","date_gmt":"2023-06-08T14:53:43","guid":{"rendered":"https:\/\/commerceiets.com\/?p=7246"},"modified":"2023-06-08T15:13:53","modified_gmt":"2023-06-08T15:13:53","slug":"treatment-of-normal-loss-and-abnormal-loss-in-process-costing","status":"publish","type":"post","link":"https:\/\/commerceiets.com\/treatment-of-normal-loss-and-abnormal-loss-in-process-costing\/","title":{"rendered":"TREATMENT OF NORMAL LOSS AND ABNORMAL LOSS IN PROCESS COSTING"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\"><strong>TREATMENT OF NORMAL LOSS AND ABNORMAL LOSS IN PROCESS COSTING<\/strong><\/h2>\n\n\n\n<p>In manufacturing processes, entire input is not getting converted into output. A certain part of input is lost while processing which is inevitable. Certain production techniques are of such a nature that some loss is inherent to the production. Wastages of material, evaporation of material are un- avoidable in some process. But sometimes the Losses are also occurring due to negligence of Labourer, poor quality raw material, poor technology etc. These are normally called as avoidable losses. Basically, process losses are classified into two categories<\/p>\n\n\n\n<p>(a) Normal Loss<\/p>\n\n\n\n<p>(b) Abnormal Loss<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/commerceiets.com\/treatment-of-normal-loss-and-abnormal-loss-in-process-costing\/#Treatment_of_Normal_Loss_in_Process_Costing\" title=\"Treatment of Normal Loss in Process Costing\">Treatment of Normal Loss in Process Costing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/commerceiets.com\/treatment-of-normal-loss-and-abnormal-loss-in-process-costing\/#Treatment_of_Abnormal_loss_in_process_costing\" title=\"Treatment of Abnormal loss in process costing\">Treatment of Abnormal loss in process costing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/commerceiets.com\/treatment-of-normal-loss-and-abnormal-loss-in-process-costing\/#Treatment_of_Abnormal_Gain_in_Process_Costing\" title=\"Treatment of Abnormal Gain in Process Costing\">Treatment of Abnormal Gain in Process Costing<\/a><\/li><\/ul><\/nav><\/div>\n<h3 class=\"wp-block-heading has-text-align-center\"><span class=\"ez-toc-section\" id=\"Treatment_of_Normal_Loss_in_Process_Costing\"><\/span><strong>Treatment of Normal Loss in Process Costing<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Normal losses in process costing arises because of the normal wastage. Normal wastage is the quantity od wastage which is unavoidable and is bound to take place. It cannot be avoided though efforts can be made to minimise it. Normal wastage generally arises on account of the nature of materials used or the nature of the manufacturing process involved. The extent of normal wastages can be ascertained on the basis of past experience.<\/p>\n\n\n\n<p>The cost of normal wastage or loss in the process is borne by the goods units produced in the process. The quantity of normal wastage or loss is shown in the \u2018units column\u2019 on the credit side of the Process Account. If the normal loss or wastage has some realisable value, the process account is credited with such realisable value. Thus, the total process cost less any realisable value or scrap value of normal wastage divided by the number of good units produced in the process, shall give us the cost per unit.<\/p>\n\n\n\n<p><strong><em>Normal Effectives: <\/em><\/strong>In relation to the normal wastage or normal loss, it is necessary to know the meaning of Normal Effectives. Normal Effectives are the good units produced when the wastage is normal. Normal effectives are also known as \u2018Normal Output\u2019 and may be expressed in the form of the following equation:<\/p>\n\n\n\n<p><strong>Normal Effectives (in units) = Total inputs (units)- Normal wastage (units)<\/strong><\/p>\n\n\n\n<p><strong>Example: <\/strong>In a particular process, the number of units puts in is 1,000 and 2% of the input is normal wastage or normal loss, then normal effectives are:<\/p>\n\n\n\n<p>= 1,000 units- 20 units (1,000*2%)<\/p>\n\n\n\n<p>= 980 units<\/p>\n\n\n\n<p><strong>JOURNAL ENTRIES FOR NORMAL LOSSES<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><\/td><td><strong>Debit<\/strong><\/td><td><strong>Credit<\/strong><\/td><\/tr><tr><td><strong>For scrap value of normal loss<\/strong><\/td><td><strong>Normal loss A\/c<\/strong><\/td><td><strong>Process A\/c<\/strong><\/td><\/tr><tr><td><strong>For adjustment of the short fall in the sale of normal loss<\/strong><\/td><td><strong>Normal Gain A\/c<\/strong><\/td><td><strong>Normal Loss A\/c<\/strong><\/td><\/tr><tr><td><strong>For realisation of scrap value of normal loss<\/strong><\/td><td><strong>Cash A\/c<\/strong><\/td><td><strong>Normal Loss A\/c<\/strong><\/td><\/tr><\/tbody><\/table><figcaption class=\"wp-element-caption\">TREATMENT OF NORMAL LOSS AND ABNORMAL LOSS IN PROCESS COSTING<\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center\"><span class=\"ez-toc-section\" id=\"Treatment_of_Abnormal_loss_in_process_costing\"><\/span>Treatment of <strong>Abnormal loss in process costing<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Abnormal loss arises because of abnormal wastage. Any wastage or loss arising over and above the normal wastage or normal loss is treated as abnormal wastage or abnormal loss. Such a wastage or loss is otherwise avoidable and arises due to unexpected or abnormal reasons such as sub-standard materials, defective machinery, negligence, carelessness, slackness,&nbsp;accidents&nbsp;etc.<\/p>\n\n\n\n<p>The cost of abnormal wastage is not allowed to affect the cost of good units produced such wastage can not be estimated in advance. Abnormal wastage of a process is valued at actual cost (ie, the cost of material, labour and appropriate overhead incurred by the wastage) by applying the following formula:<\/p>\n\n\n\n<p>Cost of Abnormal Wastage= [(Cost of Normal Effectives\/ Normal Effectives in units) x Abnormal Wastage in units]<\/p>\n\n\n\n<p>OR Cost of Abnormal Wastage=<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"846\" height=\"73\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/1.png\" alt=\"TREATMENT OF NORMAL LOSS AND ABNORMAL LOSS IN PROCESS COSTING\" class=\"wp-image-7248\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/1.png 846w, https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/1-300x26.png 300w, https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/1-768x66.png 768w\" sizes=\"(max-width: 846px) 100vw, 846px\" \/><figcaption class=\"wp-element-caption\"><strong>TREATMENT OF NORMAL LOSS AND ABNORMAL LOSS IN PROCESS COSTING<\/strong><\/figcaption><\/figure>\n\n\n\n<p>The cost of abnormal wastage is debited to Abnormal Wastage Account and credited to the concerned Process Account. Abnormal Wastage Account is, then, credited with the realisable value or scrap value, if any, of such abnormal wastage and the balance of the account is transferred to Costing Profit and Loss Account by way of\u00a0abnormal\u00a0loss.<\/p>\n\n\n\n<p><strong>JOURNAL ENTRIES FOR ABNORMAL LOSSES<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><\/td><td><strong>Debit<\/strong><\/td><td><strong>Credit<\/strong><\/td><\/tr><tr><td><strong>For value of abnormal loss<\/strong><\/td><td><strong>Abnormal loss A\/c<\/strong><\/td><td><strong>Process A\/c<\/strong><\/td><\/tr><tr><td><strong>For realisation of scrap value<\/strong><\/td><td><strong>Cash A\/c<\/strong><\/td><td><strong>Abnormal Loss A\/c<\/strong><\/td><\/tr><tr><td><strong>For transfer of balance to Costing profit and loss account<\/strong><\/td><td><strong>Costing profit and loss A\/c<\/strong><\/td><td><strong>Abnormal Loss A\/c<\/strong><\/td><\/tr><\/tbody><\/table><figcaption class=\"wp-element-caption\">TREATMENT OF NORMAL LOSS AND ABNORMAL LOSS IN PROCESS COSTING<\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center\"><span class=\"ez-toc-section\" id=\"Treatment_of_Abnormal_Gain_in_Process_Costing\"><\/span>Treatment of <strong>Abnormal Gain in Process Costing<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Sometimes, the actual wastage or loss in a process may be less than the normal wastage or normal loss. is such a case, the good units produced in excess of normal effectives (or normal output), are treated as abnormal effectives or abnormal gain. Abnormal effectives or abnormal gain may arise due to exceptionally good quality of materials, exceptionally high degree of efficiency on the part of workers and supervisory staff, etc. Such conditions are not normally expected.<\/p>\n\n\n\n<p>In the form of equation, abnormal effectives or abnormal gain may be expressed or follows:<\/p>\n\n\n\n<p>Abnormal Effectives (units) = Actual Output (units)- Normal Effectives (units)<\/p>\n\n\n\n<p><strong>OR<\/strong><\/p>\n\n\n\n<p>Abnormal Effectives (units) = Normal Wastage (units)- Actual&nbsp;Wastage&nbsp;(units)<\/p>\n\n\n\n<p>Suppose, in a process, 5,000 units of basic raw material are introduced. It is ascertained on the basis of past experience that 5% of the input is normal wastage. If the actual output is 4,800 units, there is a abnormal gain of 50 units calculated as follows:<\/p>\n\n\n\n<p>Normal Effectives -Input Normal Wastage<\/p>\n\n\n\n<p>=5,000 units-250 units -4,750 units.<\/p>\n\n\n\n<p>Actual output =4,800 units<\/p>\n\n\n\n<p>Abnormal Effectives &#8211; Actual output &#8211; Normal Effectives<\/p>\n\n\n\n<p>=4,800 units-4,750 units =50 units.<\/p>\n\n\n\n<p><strong>Accounting Treatment of Abnormal Gain or Abnormal Effectives:<\/strong><\/p>\n\n\n\n<p>Abnormal effectives or abnormal gain, arising due to abnormal conditions, are not allowed to reduce the cost of good units. In case of abnormal effectives, the Normal Wastage Account is debited and the concerned Process Account is credited with the quantity (in units column) and realisable value, if any (in Amount Column), of normal wastage (which is notional). Thereafter, the value of abnormal effectives is ascertained at the rate at which good units would have been valued, had there been normal wastage only. The value of abnormal effectives is calculated by applying the following formula:<\/p>\n\n\n\n<p>Value of abnormal effectives =<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"562\" height=\"73\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/2.png\" alt=\"TREATMENT OF NORMAL LOSS AND ABNORMAL LOSS IN PROCESS COSTING\" class=\"wp-image-7249\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/2.png 562w, https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/2-300x39.png 300w\" sizes=\"(max-width: 562px) 100vw, 562px\" \/><figcaption class=\"wp-element-caption\"><strong>TREATMENT OF NORMAL LOSS AND ABNORMAL LOSS IN PROCESS COSTING<\/strong><\/figcaption><\/figure>\n\n\n\n<p><strong>Or<\/strong><\/p>\n\n\n\n<p>Value of abnormal effectives =<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"771\" height=\"72\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/3.png\" alt=\"TREATMENT OF NORMAL LOSS AND ABNORMAL LOSS IN PROCESS COSTING\" class=\"wp-image-7250\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/3.png 771w, https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/3-300x28.png 300w, https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/3-768x72.png 768w\" sizes=\"(max-width: 771px) 100vw, 771px\" \/><figcaption class=\"wp-element-caption\"><strong>TREATMENT OF NORMAL LOSS AND ABNORMAL LOSS IN PROCESS COSTING<\/strong><\/figcaption><\/figure>\n\n\n\n<p>The value of abnormal effectives thus determined will be debited to Process Account concerned and credited to Abnormal Effectives Account (or Abnormal Gain Account). The realisable value of actual wastage (which is less than the notional quantity of normal wastage) is credited to the Normal Wastage Account. The debit balance of Normal Wastage Account, denoting the excess of quantity and value of notional normal wastage over the quantity and value of actual wastage, is transferred to the Abnormal Effectives Account. Thereafter, the credit balance of Abnormal Effectives Account is closed by transfer to Costing Profit and Loss Account by way of abnormal gain or profit.<\/p>\n\n\n\n<p><strong>JOURNAL ENTRIES FOR ABNORMAL GAINS<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><\/td><td><strong>Debit<\/strong><\/td><td><strong>Credit<\/strong><\/td><\/tr><tr><td><strong>For value of abnormal gain<\/strong><\/td><td><strong>Process A\/c<\/strong><\/td><td><strong>Abnormal gain A\/c<\/strong><\/td><\/tr><tr><td><strong>For realisation of scrap value<\/strong><\/td><td><strong>Abnormal gain A\/c<\/strong><\/td><td><strong>Normal Loss A\/c<\/strong><\/td><\/tr><tr><td><strong>For transfer of balance to Costing profit and loss account<\/strong><\/td><td><strong>Abnormal gain A\/c<\/strong><\/td><td><strong>Costing profit and loss A\/c<\/strong><\/td><\/tr><\/tbody><\/table><figcaption class=\"wp-element-caption\">TREATMENT OF NORMAL LOSS AND ABNORMAL LOSS IN PROCESS COSTING<\/figcaption><\/figure>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.linkedin.com\/in\/kajal-mahajan-7549b2197\/\" target=\"_blank\" rel=\"noreferrer noopener\">CONNECT ON LINKEDIN<\/a><\/div>\n<\/div>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/cost-accounting\/\">Cost Accounting<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/scope-of-cost-accounting-pdf\/\">Scope of cost accounting<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/elements-of-cost\/\">Elements of cost<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/types-of-cost\/\">Types of cost<\/a><\/td><\/tr><tr><td><a 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href=\"https:\/\/commerceiets.com\/over-absorption-and-under-absorption-of-overheads\/\">Over absorption and under absorption of overheads<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/activity-based-costing\/\">Activity based costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-traditional-costing-and-activity-based-costing\/\">Traditional costing vs ABC system<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/reconciliation-of-accounts\/\">Reconciliation of accounts<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/unit-costing\/\">Unit costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/cost-sheet-format\/\">Cost sheet format<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/cost-sheet-vs-production-account\/\">Cost sheet vs production sheet<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/job-costing\/\">Job costing<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/batch-costing\/\">Batch Costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-job-costing-and-batch-costing\/\">job costing vs batch costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/contract-costing\/\">Contract costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-job-costing-and-contract-costing\/\">Job Costing vs Contract costing<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/process-costing\/\">Process Costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/process-costing-vs-job-costing\/\">Process costing vs job costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/joint-products\/\">Joint products<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/by-products\/\">By Product&nbsp;<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/equivalent-production\/\">Equivalent production<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/marginal-costing\/\">Marginal costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/applications-of-marginal-costing\/\">Application of marginal costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/cost-volume-profit-analysis\/\">Cost volume profit analysis<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/tools-and-techniques-of-marginal-costing\/\">Tools and techniques of marginal costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/budget\/\">Budget<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/break-even-point\/\">Break even point<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/process-of-budgetary-control\/\">Process of budgetary control<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/explain-the-advantages-and-limitations-of-budgetary-control\/\">Advantages and limitations of budgetary control<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/budgetary-control\/\">Budgetary Control<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/zero-base-budgeting\/\">Zero base budgeting<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/standard-costing\/\">Standard Costing<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/variance-analysis\/\">Variance Analysis<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-standard-costing-and-budgetary-control\/\">Standard costing vs budgetary control<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-management-accounting-and-cost-accounting\/\">Management accounting vs cost accounting<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-financial-accounting-management-accounting-and-cost-accounting\/\">Cost accounting vs financial accounting<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/why-cost-accounting-is-necessary-best-detailed-explanation\/\">Why cost accounting is necessary<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/essentials-of-a-good-costing-system\/\">Essentials of good costing system<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/objectives-and-advantages-of-cost-accounting\/\">objectives and advantages of cost accounting<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/meaning-and-scope-of-cost-accountancy-pdf\/\">scope of cost accountancy<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/cost-accounting-is-an-indispensable-tool-of-modern-management\/\">Cost accounting is an indispensable tool of modern management<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/while-financial-accounting-is-external-cost-accounting-is-internal-to-the-business-discuss\/\">While financial accounting is external, cost accounting is internal to the business.<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/nature-and-advantages-of-cost-accounting\/\">Explain nature and advantages of cost accounting<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/cost-accounting-is-becoming-more-and-more-relevant-in-emerging-scenario-in-india\/\">Cost accounting in emerging scenario of India<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/objectives-of-cost-accounting\/\">Objectives of cost accounting<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/methods-of-cost-accounting-and-their-adaptability-in-different-industries\/\">Methods of cost accounting and their adaptability in different industries<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/meaning-of-escalation-clause-in-contract-costing\/\">Escalation clause in contract costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/calculation-of-profits-in-contract-costing\/\">Calculation of profits in contract costing<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/cost-plus-contracts-in-contract-costing\/\">cost plus contracts<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/importance-of-equivalent-production-in-valuing-work-in-progress\/\">Importance of equivalent production in valuing work in progress<\/a><\/td><td><\/td><td><\/td><\/tr><\/tbody><\/table><figcaption class=\"wp-element-caption\"><strong>TREATMENT OF NORMAL LOSS AND ABNORMAL LOSS IN PROCESS COSTING<\/strong><\/figcaption><\/figure>\n\n\n\n<figure class=\"wp-block-gallery has-nested-images columns-default is-cropped wp-block-gallery-1 is-layout-flex wp-block-gallery-is-layout-flex\">\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" data-id=\"7251\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/Slide1-2-1024x576.jpg\" alt=\"TREATMENT OF NORMAL LOSS AND ABNORMAL LOSS IN PROCESS COSTING\" class=\"wp-image-7251\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/Slide1-2-1024x576.jpg 1024w, https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/Slide1-2-300x169.jpg 300w, https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/Slide1-2-768x432.jpg 768w, https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/Slide1-2.jpg 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><strong>TREATMENT OF NORMAL LOSS AND ABNORMAL LOSS IN PROCESS COSTING<\/strong><\/figcaption><\/figure>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" data-id=\"7255\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/Slide2-1-1024x576.jpg\" alt=\"TREATMENT OF NORMAL LOSS AND ABNORMAL LOSS IN PROCESS COSTING\" class=\"wp-image-7255\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/Slide2-1-1024x576.jpg 1024w, https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/Slide2-1-300x169.jpg 300w, https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/Slide2-1-768x432.jpg 768w, https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/Slide2-1.jpg 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><strong>TREATMENT OF NORMAL LOSS AND ABNORMAL LOSS IN PROCESS COSTING<\/strong><\/figcaption><\/figure>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" data-id=\"7258\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/Slide3-1-1024x576.jpg\" alt=\"TREATMENT OF NORMAL LOSS AND ABNORMAL LOSS IN PROCESS COSTING\" class=\"wp-image-7258\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/Slide3-1-1024x576.jpg 1024w, https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/Slide3-1-300x169.jpg 300w, https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/Slide3-1-768x432.jpg 768w, https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/Slide3-1.jpg 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><strong>TREATMENT OF NORMAL LOSS AND ABNORMAL LOSS IN PROCESS COSTING<\/strong><\/figcaption><\/figure>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" data-id=\"7252\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/Slide4-1-1024x576.jpg\" alt=\"TREATMENT OF NORMAL LOSS AND ABNORMAL LOSS IN PROCESS COSTING\" class=\"wp-image-7252\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/Slide4-1-1024x576.jpg 1024w, https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/Slide4-1-300x169.jpg 300w, https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/Slide4-1-768x432.jpg 768w, https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/Slide4-1.jpg 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><strong>TREATMENT OF NORMAL LOSS AND ABNORMAL LOSS IN PROCESS COSTING<\/strong><\/figcaption><\/figure>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" data-id=\"7259\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/Slide5-1-1024x576.jpg\" alt=\"TREATMENT OF NORMAL LOSS AND ABNORMAL LOSS IN PROCESS COSTING\" class=\"wp-image-7259\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/Slide5-1-1024x576.jpg 1024w, https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/Slide5-1-300x169.jpg 300w, https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/Slide5-1-768x432.jpg 768w, https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/Slide5-1.jpg 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><strong>TREATMENT OF NORMAL LOSS AND ABNORMAL LOSS IN PROCESS COSTING<\/strong><\/figcaption><\/figure>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" data-id=\"7256\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/Slide6-1-1024x576.jpg\" alt=\"TREATMENT OF NORMAL LOSS AND ABNORMAL LOSS IN PROCESS COSTING\" class=\"wp-image-7256\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/Slide6-1-1024x576.jpg 1024w, https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/Slide6-1-300x169.jpg 300w, https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/Slide6-1-768x432.jpg 768w, https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/Slide6-1.jpg 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><strong>TREATMENT OF NORMAL LOSS AND ABNORMAL LOSS IN PROCESS COSTING<\/strong><\/figcaption><\/figure>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" data-id=\"7253\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/Slide7-1-1024x576.jpg\" alt=\"TREATMENT OF NORMAL LOSS AND ABNORMAL LOSS IN PROCESS COSTING\" class=\"wp-image-7253\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/Slide7-1-1024x576.jpg 1024w, https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/Slide7-1-300x169.jpg 300w, https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/Slide7-1-768x432.jpg 768w, https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/Slide7-1.jpg 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><strong>TREATMENT OF NORMAL LOSS AND ABNORMAL LOSS IN PROCESS COSTING<\/strong><\/figcaption><\/figure>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" data-id=\"7254\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/Slide8-1-1024x576.jpg\" alt=\"TREATMENT OF NORMAL LOSS AND ABNORMAL LOSS IN PROCESS COSTING\" class=\"wp-image-7254\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/Slide8-1-1024x576.jpg 1024w, https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/Slide8-1-300x169.jpg 300w, https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/Slide8-1-768x432.jpg 768w, https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/Slide8-1.jpg 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><strong>TREATMENT OF NORMAL LOSS AND ABNORMAL LOSS IN PROCESS COSTING<\/strong><\/figcaption><\/figure>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" data-id=\"7257\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/Slide9-1-1024x576.jpg\" alt=\"TREATMENT OF NORMAL LOSS AND ABNORMAL LOSS IN PROCESS COSTING\" class=\"wp-image-7257\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/Slide9-1-1024x576.jpg 1024w, https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/Slide9-1-300x169.jpg 300w, https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/Slide9-1-768x432.jpg 768w, https:\/\/commerceiets.com\/wp-content\/uploads\/2023\/06\/Slide9-1.jpg 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><strong>TREATMENT OF NORMAL LOSS AND ABNORMAL LOSS IN PROCESS COSTING<\/strong><\/figcaption><\/figure>\n<\/figure>\n","protected":false},"excerpt":{"rendered":"<p>TREATMENT OF NORMAL LOSS AND ABNORMAL LOSS IN PROCESS COSTING In manufacturing processes, entire input is not getting converted into output. A certain part of input is lost while processing which is inevitable. Certain production techniques are of such a nature that some loss is inherent to the production. Wastages of material, evaporation of material&#8230;<\/p>\n<p class=\"more-link-wrap\"><a href=\"https:\/\/commerceiets.com\/treatment-of-normal-loss-and-abnormal-loss-in-process-costing\/\" class=\"more-link\">Read More<span class=\"screen-reader-text\"> &ldquo;TREATMENT OF NORMAL LOSS AND ABNORMAL LOSS IN PROCESS COSTING&rdquo;<\/span> &raquo;<\/a><\/p>\n","protected":false},"author":2,"featured_media":7247,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[187],"tags":[555,552,554],"_links":{"self":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/7246"}],"collection":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/comments?post=7246"}],"version-history":[{"count":4,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/7246\/revisions"}],"predecessor-version":[{"id":7266,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/7246\/revisions\/7266"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media\/7247"}],"wp:attachment":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media?parent=7246"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/categories?post=7246"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/tags?post=7246"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}