An amount of spoilage that is not natural in a specific production process is categorized as ____________?
Correct answer: B. abnormal spoilage
- A. normal scrap
- B. abnormal spoilage
- C. normal spoilage
- D. weighted spoilage
Explanation
Abnormal spoilage is the excess spoilage that is not expected under efficient operating conditions or the normal production process. Normal spoilage is anticipated and is usually included in product cost.
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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
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