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Commerce · Q744

Costing

Graduate and Post Graduate · Commerce · question 744

Q744

An amount of spoilage that is natural in any particular production process is classified as

A.
normal scrap
B.
normal spoilage
Answer
C.
abnormal spoilage
D.
weighted spoilage

Answer: Option B

Solution

Answer: Option B
Solution:
An amount of spoilage that is natural in any particular production process is classified as normal spoilage. Normal spoilage refers to the inherent worsening of products during the production or inventory processes of the sales cycle.