In a job-order costing system,the net cost of normal spoilage is equal to

Question

Quizplus · Accepted Answer

The net cost of normal spoilage is the cost of spoiled work minus the estimated disposal value. This is because the cost of spoiled work is still included in the cost of goods produced, but the disposal value reduces the overall cost of the process. Therefore, subtracting the estimated disposal value from the cost of spoiled work gives the true net cost of normal spoilage.

In a Job-Order Costing System,the Net Cost of Normal Spoilage