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  1. Avatar of johnmoffat 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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