Certain losses are inherent in the production process and 
cannot b eliminated.
These losses occur under efficient operating conditions and 
are referred to as Normal or uncontrollable losses. 


In addition to losses which cannot be avoided, there are 
some losses which are not expected to occur under efficient 
operating conditions, for example the improper mixing of 
ingredients, the use of inferior materials and the 
incorrect cutting of cloths. These losses are not an 
inherent part of the production process and are referred to 
as abnormal or controllable losses. 
Normal loss is the loss expected during a process. It is 
not given a cost. 
Abnormal losses is the extra loss resulting when actual 
loss is greater than normal or expected loss ,and it is 
given a costs. 
Since an abnormal loss is not given a cost, the cost 
producing these units is borne by the good units of output.
Abnormal loss and gain units are valued at the same rate 
as “good” units. Abnormal events do not therefore affect 
the cost of good production. Their costs are analyzed 
separately in an abnormal loss or abnormal gain account