The monetary value attributed to normal losses in a process should be

Related MCQs

• In some cases, a company might have to pay to dispose of losses in a process. The cost of disposal represents an additional cost to the process. To reflect this in the process account the normal loss is measured at zero but the expected costs of disposal are debited to the process account.
• If normal loss has a scrap value the company is able to recover some of the input costs to the process. The scrap value reduces the cost of the process.
• Normal loss is ___________in the normal course of events. It is inherent in the physical and chemical reactions that take place in a process.
• If it is assumed that all losses in process occur at the end of the process, units of abnormal loss are costed in exactly the same way in the as units of finished output.
• If the normal loss has no scrap value it is given a nil value.
• Where process scrap is recycled for use in conjunction with new material as well as being so externally, which of. the following is most likely to be the value at which is debited to the process?
• When the abnormal has a scrape value the net cost of abnormal loss (cost of abnormal loss minus its scrap value) is then transferred as a cost to the cost accounting income statement at the end of the accounting period.
• Joint products are two or more products generated simultaneously, by a single manufacturing process using common input, and being substantially equal in value.
• By products are outputs from a joint process that are relatively minor in quantity and/or value.
• Normal loss is usually expressed as a percentage of the input units of materials.