Abnormal spoilage is treated differently from normal spoilage in what way?
A)Equivalent units are calculated for abnormal spoilage but not for normal spoilage.
B)Equivalent units are calculated for normal spoilage but not for abnormal spoilage.
C)Normal spoilage is absorbed as part of the product cost but abnormal spoilage costs are treated separately.
D)Abnormal spoilage is not assigned costs but normal spoilage is.

Question

Quizplus · Accepted Answer

Normal spoilage is considered a normal part of production and is absorbed as part of the product cost, whereas abnormal spoilage is not expected to occur and is treated as a separate cost. Therefore, normal spoilage costs are included in the cost of production and are assigned equivalent units, while abnormal spoilage costs are treated separately and not assigned equivalent units.

Abnormal Spoilage Is Treated Differently from Normal Spoilage in What