Q745
Cost of abnormal spoilage is not treated as
A.
conversion costs
B.
sunk costs
C.
inventoriable costs
D.
non inventoriable costs
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Cost of abnormal spoilage is not treated as non inventoriable costs. Non-inventoriable cost are costs that are not included in the value of inventory, also known as non-manufacturing overhead. It includes Selling, General and Administrative expenses, and Interest expense.