The unit costs of normal and abnormal spoilage are the same when the two are detected at the same inspection point.

Question

Quizplus · Accepted Answer

If normal and abnormal spoilage are both detected at the same inspection point, it suggests that the company has a well-designed quality control system in place. In this case, the unit costs of normal and abnormal spoilage are likely to be the same because the same production process has produced both types of spoilage. However, if the detection of abnormal spoilage requires additional inspection or rework, the unit costs of abnormal spoilage will be higher than those of normal spoilage.

The Unit Costs of Normal and Abnormal Spoilage Are the Same