If the cost of rework is tracked, it is recorded in the accounting system in the same manner as:
A) A period cost
B) Spoilage
C) Scrap
D) A deferred asset

Question

Quizplus · Accepted Answer

Rework is similar to spoilage in that both result in a decrease in the quantity or quality of products produced. Therefore, the cost of rework should be recorded in the accounting system in the same manner as spoilage.

If the Cost of Rework Is Tracked, It Is Recorded