The units of normal spoilage are divided to total completed units, rather than total actual produced units to calculate ____________?
Correct answer: A. normal spoilage rates
- A. normal spoilage rates
- B. abnormal spoilage rates
- C. normal scrap rates
- D. abnormal scrap rates
Explanation
The normal spoilage rate uses normal spoilage units as the numerator and total completed good units as the denominator. Normal spoilage is expected during efficient production, so it is assigned to the good output.
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 sum of beginning work in process inventory units and started units, is subtracted from the sum of ending work in process inventory units and transferred out units of goods, to calculate ____________?
The normal spoilage is subtracted from total spoilage to calculate _____________?
The residual material which results from manufacturing products is called ___________?
The types of spoilage include ___________?
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 type of spoilage, which is considered as controllable and can be avoided is called _____________?