Vidyalelo
Commerce · Q730

Costing

Graduate and Post Graduate · Commerce · question 730

Q730

Types of spoilage include

A.
normal spoilage
B.
abnormal spoilage
C.
weighted spoilage
D.
both a and b
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Types of spoilage include normal spoilage and abnormal spoilage.
Normal spoilage is the kind of spoilage that happens during the production process that business owners can say is normal and acceptable.
Abnormal spoilage, on the other hand, is spoilage that is beyond the normal point wherein the level is unexpectedly high. It may be due to defective machinery, sub-standard quality of materials, and even incompetent operators.