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: 18-8

Answer

I agree. Normal spoilage rates should be computed based on the good output or normal input, excluding abnormal spoilage. Including abnormal spoilage in the calculation would lead to irregular fluctuations and make it difficult to manage and analyze normal spoilage effectively.

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