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Shrinkage - Production Process
This refers to a disappearance or loss of material inputs utilized throughout the production process. It happens mainly via the evaporation. This is not like spoilage whether the units still exist merely that they will be of a lower value than the good units. Shrinking is universal in chemical mixtures such produce or employ liquid gases as material inputs. The problem associated along with shrinking is the reconciliation of the ending and beginning inventory. This problem is resolved via expressing the various layers of production in terms of what its weights or volume would be either at the end or beginning of the process.
costing for materials and control
CONTRIBUTION : It is the variation between the marginal cost of sales and sales and it contributes towards fixed profit and expenses. It is differ from the profit which is the net
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