There are two type of losses which are
Normal Loss
The loss of input/output where it is uncontrollable is normal loss. It must be occurred in production process.
Normal losses normally expressed in exact terms (like 60 units) or in proportionate terms (like 1/10th) or in percentage terms (like 5%).
In problem solving, where no specific mention is made, the loss is calculated based on gross input.
Abnormal Loss
The loss which is controllable and occur due to the inefficiency, negligence or poor control during the production.
It is calculated by "Abnormal Loss Units" = "Normal Output Units" − "Actual Output Units"
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