1. Profile photo of John Moffat says

    The course notes and the lecture both explain this.

    In example 1, the losses have no sale value.
    In example 2, the losses are sold for $5 a kg and any sale proceeds of normal losses are subtracted from the costs (i.e. treated as a negative cost)

  2. avatar says

    In the Example # 2 the 300 KG of Normal loss whose value will be 1500$ (300* 5$) but why this value 1500 $ has been subtracted from the value 52800 $? Explain this.Because in the example #1 the Value of Normal loss was not subtracted only the kg value was subtracted.

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