Normal loss

Normal loss is the loss expected under efficient operating conditions for the process and input quantity concerned. It may arise from evaporation, cutting or other unavoidable process characteristics. In a simple process-cost calculation, its net cost is borne by expected good output, with scrap proceeds reducing the cost to allocate where appropriate. Actual loss is compared with the normal allowance to identify an abnormal loss or gain; the label does not depend on whether an event sounds unusual.