What are the causes of Abnormal Loss?
Abnormal Losses are not certain and can not be pre-determined because abnormal losses happen due to uncertain events and exceptional events. Following could be some of the causes of abnormal loss:
- Natural Calamity
- Machine Failure
- Faulty Equipment
- Unskilled labour unable to adapt to new technology.
- Any error in implementing the product plan
- Theft of Goods
- Bad Handling/storage of goods.
- Any other event that results in loss other than normally expected loss, etc.