ECONOMICS

Detailed explanation-1: -Weight losses, shrinkage, evaporation, rusting etc. are the examples of normal loss. Normal loss increases the cost of production of the usable goods realized. For example, if you doing the business of timber on the basis of their weight.

Detailed explanation-2: -The normal loss means a loss which is inherited and can not be avoided. It should also be considered while valuing the closing stock.

Detailed explanation-3: -A loss which occurs normally during the process of production is called as normal loss. When actual loss is less than the estimated loss it is considered as abnormal gain.

Detailed explanation-4: -Meaning. Normal Loss is a loss that takes place due to the inherent nature of the raw materials and process of production under ordinary circumstances. Abnormal Loss refers to a loss that arises due to unexpected events like defective material, carelessness, machinery breakdown, etc.