Spoilage issues arise in accounting for process costing but not in accounting for job costing.

Question

Quizplus · Accepted Answer

Spoilage issues can arise in both process costing and job costing depending on the nature of the manufacturing process or the job. However, process costing is more likely to face spoilage issues because it involves large volumes of homogeneous products whereas job costing involves smaller batches of customized products.

Spoilage Issues Arise in Accounting for Process Costing but Not