Equipment units.

Management Accounting Block Revision Mock Exams

 Equivalent units: This is the number of equivalent fully complete units which the partly complete units represent. They are calculated as physical units x percentage of completion. The concept of equivalent units enables the accurate valuation of closing work in Read More …

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Abnormal loss

Management Accounting Block Revision Mock Exams

Abnormal loss: Are losses that can be avoided during the production process and cannot therefore be termed as normal process losses. These cannot be foreseen and they are above the expected/normal losses. Abnormal loss = Actual loss – Normal loss. Read More …

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Normal loss

Management Accounting Block Revision Mock Exams

Normal Loss: Refers to unavoidable losses arising from the nature of the Production process, thus it is necessary that they are charged as part of the cost of production. Any value realised from the sale of normal loss items should Read More …

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