Which of the following can be used in accounting for spoilage?

Question

Quizplus · Accepted Answer

Both FIFO and weighted average can be used to account for spoilage, as they involve tracking the cost of goods sold and adjusting inventory for damaged or spoiled goods. Standard costs alone may not account for the actual cost of spoilage, but they can be used in conjunction with FIFO or weighted average to establish a benchmark or target cost for goods produced. Therefore, the best choice is E, which includes all three options.

Which of the Following Can Be Used in Accounting for Spoilage