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Process Loss

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Process Loss
Any units lost in the process or becoming unfit or defective for sale as normal output
are called ‘process losses’. Loss is also the reduction in the quantity of output of a
process as compared with the quantity of input. All process losses must be properly
accounted for, for the purpose of accurate calculation of cost of units. Process loss
may occur at the beginning, middle or at the end of a process. Loss at one stage or
process will have an impact on the subsequent processes as well as on the cost of
the final output.

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