Abnormal loss in material processing is:

1. Abnormal losses arise from non-routine events such as accidents or careless handling. 2. Their cost should not be absorbed by good production as that would distort unit cost. 3. Instead the loss is charged to the costing profit and loss account separately. 4. Normal losses follow a different treatment as they are absorbed in good output. _Source: ICAI BoS Inter Paper 3, Ch 2 "Material Cost", §2.8 ¶4_