Answer
The costs of abnormal spoilage are indeed considered as losses. Abnormal spoilage represents spoilage that is not inherent in a production process and would not occur under efficient operating conditions. These costs are essentially "lost costs" because they are a direct result of inefficiency or issues within the production process. Such costs should be written off as losses for the accounting period to accurately reflect the financial impact of this abnormal spoilage and to address the underlying problems or inefficiencies that caused it.
Work Step by Step
No steps.
