The cost of normal discrete losses is

Name: The cost of normal discrete losses is
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Normal discrete losses are losses that are an expected part of the production process, and therefore are factored into the cost of producing the remaining good units. One way to account for this cost is to absorb it by all units past the inspection point on an equivalent unit basis. This means that the cost of the lost units is spread out among the good units, making the cost per unit slightly higher.

The Cost of Normal Discrete Losses Is