Vidyalelo
Commerce · Q740

Costing

Graduate and Post Graduate · Commerce · question 740

Q740

Normal spoilage is subtracted from total spoilage to calculate

A.
abnormal spoilage
Answer
B.
Gross weighted spoilage
C.
inventoriable spoilage
D.
partial spoilage

Answer: Option A

Solution

Answer: Option A
Solution:
Normal spoilage is subtracted from total spoilage to calculate abnormal spoilage. Abnormal spoilage is the amount of waste or destruction of inventory beyond what is expected in normal business processes.