19.2 two types of spoilage

Question 1

is spoilage inherent in a particual production process
it arises even when the process is carried out in an efficient manner

Answer 1

normal spoilage

Question 2

the costs of normal spoilage are included as a component of the

Answer 2

cost of goods units manufactured

Question 3

normal spoilage costs are inventoried and included in the

Answer 3

cost of good units completed

Question 4

normal spoilage rate equation

Answer 4

normal spoilage rate =
units of normal spoilage / total good units completed

Question 5

spoilage that is not injerent in a particular production process and would not arise under efficienct operating condition
avoidable and controllable

Answer 5

abnormal spoilage

Question 6

line operators and other plant personnel generally can decrease or eliminate ______ by identifying the reasons for machine breakdowns, operator errors, and so forth, by taking steps to prevent themm from recurring

Answer 6

abnormal spoilage

Question 7

to highlight abnormal spoilage costs, companies record the cost of abnormal spoilage in a

Answer 7

loss from abnormal spoilage account which is a seperate line item in the income statement

Question 8

the costs of abnormal spoilage are not considered

Answer 8

inventoriable and are written off as a period expense