Vidyalelo
Commerce · Q733

Costing

Graduate and Post Graduate · Commerce · question 733

Q733

An amount of spoilage that is not natural in a specific production process is categorized as

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

Answer: Option C

Solution

Answer: Option C
Solution:
An amount of spoilage that is not natural in a specific production process is categorized as abnormal spoilage. Abnormal spoilage does not directly correspond to the number of units produced, and is considered an unexcepted surplus.