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What is the difference between normal and abnormal stock loss in inventory study in accounting?

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Question added by Muhammad Usama Rehman
Date Posted: 2016/08/28
Terrence Walmsley
by Terrence Walmsley , Owner , The Awesome Group of Companies

Normal would be stock losses due to product expiry, damages, short deliveries. Abnormal would be related to possible theft or missed Ng items during stock take.

A business will set the provision of acceptable tolerances for both theses with actions to be initiated when levels exceed the acceptable levels.

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