Spoilage costs from an unusual natural disaster would be allocated to good units produced in a process costing system.

Name: Spoilage costs from an unusual natural disaster would be allocated to good units produced in a process costing system.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Spoilage costs caused by an unusual natural disaster would be considered as an abnormal loss and would not be allocated to good units produced under a process costing system. Instead, abnormal losses are treated as a separate cost item and allocated separately.

Spoilage Costs from an Unusual Natural Disaster Would Be Allocated