Normal and Abnormal Loss

Normal is expected and anticipated loss for which provisions are being made. Normal loss of goods should also be considered while valuing the closing stock or unsold stock. Normal loss means inherent and unavoidable loss. Abnormal loss is a loss that is not expected and take place. Abnormal Loss can be controlled if measures are taken before time. Abnormal Loss can be calculated as normal cost of normal out put by normal output into Abnormal loss quantity.