Abnormal process loss

It is defined as the loss in excess of the pre-determined loss.
This type of loss may occur due to the carelessness of workers, a bad plant design or
operation etc. Such a loss cannot obviously be estimated in advance. But it can be kept under
control by taking suitable measures. The cost of an abnormal process loss unit is equal to the
cost of a good unit. The total cost of abnormal process loss is credited to the process account
from which it arise. Cost of abnormal process loss is not treated as a part of the cost of the
product. In fact, the total cost of abnormal process loss is debited to costing profit and loss
account.