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.
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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
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 ____________?
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