normal loss

normal loss The loss arising from a manufacturing or chemical process through waste, seepage, shrinkage, or spoilage that can be expected, on the basis of historical studies, to be part of that process. It may be expressed as a weight or volume or in other units appropriate to the process. It is usually not valued but if it is, a notional scrap value is used. It is axiomatic in costing that normal losses are part of the normal manufacturing cost, whereas the cost of abnormal losses should not be borne by the good output. See alsowaste.

• direct materials cost
• director
• directors or higher-paid employees
• directors’ authority to act
• directors’ interests
• directors’ remuneration
• directors’ report
• directory
• direct placing
• direct quote
• direct-response TV advertising
• direct taxation
• direct write-off method
• dirham
• dirty price
• disbursement
• disclaimer
• discount
• discounted cash flow
• discounted payback method
• discounted value
• discount factor
• discount house
• discount rate
• discretionary account