The value of abnormal loss is calculated with the help of the following formula. Only 9 percent of the businesses surveyed actually had a shrinkage rate close to the overall average between 125 and 149 percent with most businesses significantly higher or lower. For example the fraction 612 turns into a decimal like this.
The formula for calculation of the percentage of normal spoilage is as follows.
Only 9 percent of the businesses surveyed actually had a shrinkage rate close to the overall average between 125 and 149 percent with most businesses significantly higher or lower. Most of the time there is a predetermined range within which this percentage should lie based on experience or industry best practices. Only 9 percent of the businesses surveyed actually had a shrinkage rate close to the overall average between 125 and 149 percent with most businesses significantly higher or lower. The term is most commonly applied to raw materials that have a short life span such as food used in the hospitality industry.