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

Question

Quizplus · Accepted Answer

Accounting for rework in process-costing does require distinguishing abnormal rework (caused by errors or defects) from normal rework (caused by expected variations in the manufacturing process). This distinction is important because abnormal rework may require additional cost allocation or adjustment in the production process.

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