Which of the following is true of unit costs of normal and abnormal spoilage when they are detected at the same inspection point?
A) Unit cost of normal spoilage is more than unit cost of abnormal spoilage.
B) Unit cost of normal spoilage is equal to unit cost of abnormal spoilage.
C) Unit cost of abnormal spoilage is more than unit cost of normal spoilage.
D) Addition of unit cost of normal spoilage and unit cost of abnormal spoilage is equal to unit cost of good units produced and transferred.

Question

Quizplus · Accepted Answer

The unit cost of normal and abnormal spoilage is the same when detected at the same inspection point because both incur the same production costs up to the point of inspection.

Which of the Following Is True of Unit Costs of Normal