Answer
I disagree. The unit cost of normal spoilage is not the same as the unit cost of abnormal spoilage. Normal spoilage is planned and inherent in the production process, with its unit cost typically included in standard costs. Abnormal spoilage, however, arises unexpectedly and is not part of planned production costs, so its unit cost can be different. Treating them as the same could lead to inaccurate cost analysis and financial reporting.
Work Step by Step
I disagree. The unit cost of normal spoilage is not the same as the unit cost of abnormal spoilage. Normal spoilage is planned and inherent in the production process, with its unit cost typically included in standard costs. Abnormal spoilage, however, arises unexpectedly and is not part of planned production costs, so its unit cost can be different. Treating them as the same could lead to inaccurate cost analysis and financial reporting.