The costs associated with abnormal spoilage is excluded from product costs and treated as a separate loss.

Question

Quizplus · Accepted Answer

Abnormal spoilage exceeds the normal or expected spoilage levels and is not considered part of the production costs. Instead, it is treated as a separate loss and charged to expense in the period it occurs, reflecting its nature as an inefficiency or unusual occurrence not inherent to the production process.

The Costs Associated with Abnormal Spoilage Is Excluded from Product