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Monday, March 2, 2009

Normal process loss

It is defined as the loss of material which is inherent in the
nature of work. Such a loss can be reasonably anticipated from the nature of the material,
nature of operation, the experience and technical data. The cost of normal process loss in
practice is absorbed by good units produced under the process. The amount realised by
the sale of normal process loss units should be credited to the process account.

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