The normal spoilage is subtracted from total spoilage to calculate _____________?
Correct answer: C. abnormal spoilage
- A. inventoriable spoilage
- B. Gross weighted spoilage
- C. abnormal spoilage
- D. partial spoilage
Explanation
Abnormal spoilage is found by subtracting the spoilage expected under normal production conditions from total spoilage. Normal spoilage is included in the cost of acceptable production, whereas abnormal spoilage is treated separately.
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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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