The cost of abnormal spoilage should be written off as a cost of the period rather than added to inventory.

Name: The cost of abnormal spoilage should be written off as a cost of the period rather than added to inventory.
Brand: Quizplus
Rating: 4.8 (45 reviews)

Question

Quizplus · Accepted Answer

Abnormal spoilage exceeds the normal or expected spoilage levels and is not a part of the production cost. It is considered a period cost and is written off in the period it occurs, rather than being added to the cost of inventory.

The Cost of Abnormal Spoilage Should Be Written Off as a Cost