Which of the following is true of abnormal spoilage?
A) It is prorated between cost of goods sold and inventory
B) It is normally treated as a part of good units produced
C) It is normally written off as an expense in the period incurred
D) It is considered to be part of production

Question

Quizplus · Accepted Answer

Abnormal spoilage exceeds the normal or expected spoilage levels and is not considered a part of the cost of production. Instead, it is typically written off as an expense in the period it is incurred, reflecting its unexpected and non-standard nature.

Which of the Following Is True of Abnormal Spoilage