Accounting for rework in process-costing requires that abnormal rework be distinguished from normal rework.

Question

Quizplus · Accepted Answer

Accounting for rework in process-costing requires distinguishing between abnormal rework (which is caused by errors in the production process) and normal rework (which is expected in any manufacturing process). This distinction is necessary to properly allocate the costs of rework to the appropriate cost centers and to accurately calculate the cost of producing each unit of product.

Accounting for Rework in Process-Costing Requires That Abnormal Rework Be