Define: Abnormal Losses

UK Accounting Glossary

Definition: Abnormal Losses


Quick Summary of Abnormal Losses


Losses arising in business that should have been avoided.




What is the dictionary definition of Abnormal Losses?

Dictionary Definition


Loss realised over normal loss is called an abnormal loss. Abnormal loss arises because of factors such as abnormal working conditions, bad working conditions, carelessness, rough handling, lack of proper knowledge, poor quality raw materials, machine faults, accidents etc.

The value of an abnormal loss is assessed on the basis of the production cost with which the profit and loss account is charged.

Value of abnormal loss = (Normal cost of normal output/Normal output) X Abnormal loss qty.


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Full Definition of Abnormal Losses


Process Loss = Normal process loss + Abnormal process loss

An abnormal loss is an unanticipated loss. Abnormal loss is a controllable loss and thus can be avoided if corrective measures are taken. Therefore, abnormal loss is also called an avoidable loss.


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Examples of Abnormal Losses in a sentence


The abnormal losses related to charges associated with the prepayment of public debt and additional costs pertaining to the sale of the book’s publishing division, the company said.
The sale would result in an abnormal loss of £5 million for Woolworth’s, which Kunkel stated may offset interest cost savings.



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American Psychological Association (APA):
Abnormal Losses. PayrollHeaven.com. Retrieved November 15, 2019, from PayrollHeaven.com website: https://payrollheaven.com/define/abnormal-losses/

Definition Sources


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This glossary post was last updated: 26th December 2018.