Page 24 - Cost Accounting - Ready Reckoner
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CHAPTER – 6
Process Costing
Process Costing is a method of costing followed by industries manufacturing
products, where raw material passes through several processes before it becomes
finished goods.
Normal loss is inevitable in processing a raw material. Scrap Realised from
normal loss reduces overall cost.
Normal loss is generally taken as a % of input.
Input – Normal Loss = Expected Output. Expected output may be equal to, more
or less than actual output.
