The type of spoilage, which is considered as controllable and can be avoided is called _____________?
Correct answer: A. abnormal spoilage
- A. abnormal spoilage
- B. normal spoilage
- C. transferred-in spoilage
- D. transferred-out spoilage
Explanation
Abnormal spoilage is considered avoidable and controllable because it results from inefficiencies beyond the expected production loss. Normal spoilage is unavoidable under efficient conditions.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
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.
Practise Cost Accounting
941 free Cost Accounting MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Cost Accounting questions
The partial or completed units of manufactured goods, that do not meet customer specifications and get sold at reduced price or simply discarded, are called ____________?
The types of spoilage include ___________?
The units of normal spoilage are divided to total completed units, rather than total actual produced units to calculate ____________?
Total transferred-out cost plus normal spoilage is divided by number of goods units produced, to calculate ___________?
The costing, which explains how and when scrap affects the operating income of company is classified as ___________?
The aspects of accounting for scrap includes __________?