The unit costs of abnormal and normal spoilage are equal, when the two are detected simultaneously.

Name: The unit costs of abnormal and normal spoilage are equal, when the two are detected simultaneously.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When the unit costs of abnormal and normal spoilage are equal, it means that the cost of producing a unit of abnormal spoilage is the same as the cost of producing a unit of normal spoilage. This implies that the two types of spoilage are detected simultaneously, as the costs are equal.

The Unit Costs of Abnormal and Normal Spoilage Are Equal