Cost Accounting (15th Edition)

Published by Prentice Hall
ISBN 10: 0133428702
ISBN 13: 978-0-13342-870-4

Chapter 18 - Spoilage, Rework, and Scrap - Assignment Material - Questions - Page 726: 18-13

Answer

I agree. Abnormal rework costs should be charged to a loss account, not to manufacturing overhead. This approach provides transparency, accountability, and encourages cost control and process improvement.

Work Step by Step

I agree. Abnormal rework costs should be charged to a loss account, not to manufacturing overhead. This approach provides transparency, accountability, and encourages cost control and process improvement.
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