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    Question

    Normal Loss is generally determined as a % of which among the following?

    A Input Correct Answer Incorrect Answer
    B Output Correct Answer Incorrect Answer
    C Input- Normal loss units Correct Answer Incorrect Answer
    D Input – Abnormal loss units Correct Answer Incorrect Answer
    E Any of the above as per company policy Correct Answer Incorrect Answer

    Solution

    Normal Losses – amount of loss which can’t be avoided because of the nature of material or process. This loss is expected under normal conditions. Example – unavoidable spoiled quantities and the cost of it is to be absorbed by good production. Normal Loss is generally determined as a % of Input If Normal Loss is physically present in the form of scrap, it may have some value and will be credited to Process A/c.

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