The costs of normal spoilage are typically included as a component of the costs of good units manufactured.

Question

Quizplus · Accepted Answer

Normal spoilage is the expected loss of units during the production process that cannot be sold as good units. As it is considered a normal part of the manufacturing process, the costs of normal spoilage are typically included as a component of the costs of good units manufactured. This is done to ensure that the costs of normal spoilage do not significantly impact the calculation of the cost of production. Therefore, the statement is true.

The Costs of Normal Spoilage Are Typically Included as a Component