Which of the statements below is not correct?
A)Normal spoilage is spoilage that occurs under efficient operating conditions.
B)Normal spoilage is controllable in the short term and not considered a part of product cost.
C)Abnormal spoilage is spoilage in excess of that expected under efficient operating conditions.
D)Abnormal spoilage is charged as a loss to operations in the period detected.

Question

Quizplus · Accepted Answer

Normal spoilage, which is anticipated and occurs under efficient operating conditions, is considered part of the product cost and is not controllable in the short term. It is accounted for as part of the manufacturing cost and allocated to all units produced, not treated as a separate controllable item or excluded from product costs.

Which of the Statements Below Is Not Correct