When normal loss has no realisable value, cost per unit is total cost divided by

1. Normal loss is unavoidable, so its cost must be borne by the good units. 2. That is achieved by shrinking the denominator rather than charging the loss out. 3. Cost per unit = total cost divided by (total input units less normal loss units). 4. Dividing by total input units instead would understate the cost of every good unit. 5. On 5,000 input with 250 normal loss, the divisor is 4,750. _Source: ICAI Cost and Management Accounting Ch10 'Process and Operation Costing', Example 1_