An amount of spoilage that is natural in any particular production process is classified as ___________?
Correct answer: B. normal spoilage
- A. normal scrap
- B. normal spoilage
- C. abnormal spoilage
- D. weighted spoilage
Explanation
Spoilage that is expected under normal operating conditions of a production process is called normal spoilage. Abnormal spoilage is the unexpected amount above this normal level.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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More Cost Accounting questions
If the units of normal spoilage are 150 and the total good units manufactured are 1500, then the normal spoilage rate would be __________?
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The normal spoilage is subtracted from total spoilage to calculate _____________?
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