What is difference between normal and abnormal loss in the context of process costing?

Normal process loss:The loss expected or anticipated prior to production is a normal process loss. It is thus called a standard loss. A provision for such a loss is made before starting production. Weight losses, shrinkage, evaporation, rusting etc. are the examples of normal loss. Normal loss increases the cost of production of the usable goods realized.Abnormal process lossThe loss realized over the normal loss is called an abnormal loss. Abnormal loss arises because of abnormal working conditions, bad working condition, carelessness, rough handling, lack of proper knowledge, low quality raw material, machine breakdown, accident etc. Therefore an abnormal loss is an unanticipated loss. Abnormal loss is a controllable loss and thus can be avoided if corrective measures are taken. Therefore, abnormal loss is also called an avoidable loss. The value of an abnormal loss is assessed on the basis of the production cost with which the profit and loss account is charged.Value of abnormal loss = (Normal cost of normal output/Normal output) X Abnormal loss qty.

agree with mre kraman & miss sreedevi answers 

Normal loss is the expected loss in a process. Normal gain is the expected gain in a process. If the loss or the gain in a process is different to what we are expecting (i.e. differs from the normal loss or gain), then we have an abnormal loss or an abnormal gain in the process.

• The costs of abnormal losses and gains are not absorbed into the cost of good output but are shown as losses and gains in the process account.
• Abnormal loss and gain units are valued at the same cost as units of good output.

The process of calculation would thus be

(1) Calculate any normal loss units (forms part of the output units)

(2) By looking at actual output, determine whether there is an abnormal loss or gain.

(3) Value the inputs.

(4) Value the normal loss (if any).

(5) Calculate the average cost per unit:

(6) Value the good output and abnormal loss or gain at this average cost per unit.

Normal loss is a loss which arises during normal course of business, which is known in advance and is a small in nature like weight, shrinkage etc.  The Abnormal loss is unknown and is above than normal loss and cannot be charged to the product as it arises because of negligence, machine breakdown, or accident which does not normally happens.

The accounting treatment for the natural damage of the goods: 

Is reached defective material through actual inventory of the material, and then is matched as a result of actual inventory with Balance Notebook materials on the same date, so the difference exists between the actual balance and the balance Notebook as a deficit, meaning that the actual inventory is less than the balance Notebook (for example, materials to be evaporated ), and in the case of defective material as a result of the loss of the properties of art, are counted and Arafa cost of carrying inventory reduction value .ielj this deficit or damaged as follows: h / Altalvaly h / Almkhozonalhdf of constraint former is the work of a settlement between the physical inventory and the balance Aldftera.thm comes into play accountant in determining the value of the damaged natural and unnatural of this damaged, and record enrollment follows: from Mzkorenh / damage Tabieih / damage is Tabieialy h / Allvobaltala we have got two types of damage, natural and unnatural. 

For natural damage is downloaded to the production processes as follows: 

Of h / cost of goods Alambaahaly h / natural damage 

And this is closing the account normal wear and considered part of the cost value. 

But if it were to sell this natural damage, are reducing the cost: of h / h Alsndoukaly / cost of goods sold 

The accounting treatment of the damage is natural: after the accountant to limit the value of this damage, starts in the search for the causes that led to the winning and Limitation of Liability (Responsibility Accounting), and there are several reasons leading to abnormal damage: 

1 shorten Amin stores in his work: from H / H Amin Almkhaznaly / damage is Tabieioma stores Amin was insured with the insurance company: from H / company Altamainaly h / damage unnatural 

Note: If there is a difference between what the insurance company will pay the value of the damage is a natural material, bears Amin stores this difference. 

2-liability management: in this case, is the loss of the institution and is loaded to the profit and loss account: from H / profits and Alkhsaúraly h / damage is natural 

Note Hamhaltalv abnormal endures the offending curse (storekeeper or of damage he caused)

Normal Loss is any loss which is incurred during the normal course of operation in the process.

Abnormal Loss is a loss which happens accidently. These are not of a recurring nature and are not incurred during the normal course of operation in the process.

In my opinion there is no normal and abnormal loss . But loss in cost occur when the element of cost exceed the limit which determined by the management .

agreed with gentlemen

But loss due to flootd or earthquake  is not due to any abnormal reason rather it is natural , then why it is considered as abnormal loss............