Waste.

Q29. Discuss meaning, accounting treatment and control of waste.
Ans.

Meaning of Waste: It represents the portion of raw material lost in processing having no recoverable value.
Accounting Treatment of Waste: Normal waste is
absorbed by good output and abnormal loss is transferred to costing P&L A/c.
Control of Waste:
1. Normal allowance should be predetermined.
2. Timely report to top management

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