(a) Explain the following terms as used in process costing: (i) Normal losses (ii) Abnormal losses (iii)...

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(a) Explain the following terms as used in process costing:

(i) Normal losses

(ii) Abnormal losses

(iii) Equivalent production

(iv) Joint cost

(v) Split-off point.

(b) In process costing, it is neither the technology nor the costs incurred, but the market price of the item, which determines whether an item is classed as:

(i) Scrap or waste; and

(ii) A joint product or a by-product.

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Frank Woods Business Accounting Volume 2

ISBN: 9780273693109

10th Edition

Authors: Frank Wood, Alan Sangster

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Question Posted: Sep 10, 2023 05:13 AM

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(a) Explain the following terms as used in process costing: (i) Normal losses (ii) Abnormal losses (iii)...

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a In process costing the following terms are used i Normal Losses Normal losses refer to the expected and unavoidable losses that occur during the production process These losses are inherent in the p...View the full answer

Frank Woods Business Accounting Volume 2

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