In: Accounting
Which of the following statements is true of normal spoilage?
a. It is a spoilage which is not inherent in a particular production process.
b. It occurs due to machine breakdowns and operator errors.
c. It is usually regarded as avoidable and controllable.
d. It arises even when the process is carried out in an efficient manner.
Normal spoilage is inherent to a production process. In other words, it arises even when the production is carried out in the most efficient way. Typically these normal spoilage costs are included in the cost of goods sold. |
||
Option D