Which of the following is true of normal spoilage?
A)This type of spoilage is charged to Loss from Normal Spoilage.
B)It is expected due to the nature of the production process.
C)This type of spoilage need not be accounted for.
D)It may result from electrical surges or by a leaky roof that allows rain to spoil the jobs beneath.

Question

Quizplus · Accepted Answer

Normal spoilage is an expected and inherent part of any production process. It is a loss that occurs even under efficient conditions and cannot be avoided. It is therefore necessary to account for normal spoilage and charge it to the cost of production. Option A is partially correct as it is charged to Loss from Normal Spoilage, but it is not the only true statement. Option C is incorrect as normal spoilage must be accounted for. Option D is incorrect as it describes an instance of abnormal spoilage caused by external factors, which is not the same as normal spoilage.

Which of the Following Is True of Normal Spoilage