![]() ![]() ![]() In another way we can define it as the difference between actual production and expected production. If the actual loss of a Process is less than that of expected loss, then the difference between the two will be treated as abnormal gain.If there is no abnormal gain, then there is no necessity to maintain a separate account for normal loss. If normal loss units have any realizable scrap value, the process account is credited by that amount. The cost of normal loss is considered as part of the cost of production in which it occurs.It is an accounting method which is adopted by the factories or industries where the standardized identical product is produced, as well as it passes through multiple processes for being transformed into the final product. Process costing is defined as a branch of operation costing, that determines the cost of a product at each stage, i.e.The correct answer is Cost of Goods Sold less realizable value of normal loss. ![]()
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