If Abnormal Spoilage Occurs in a Job-Order Costing System,has a Material

question 111

Multiple Choice

If abnormal spoilage occurs in a job-order costing system,has a material dollar value,and is related to a specific job,the recovery value of the spoiled goods should be

• A)a scrap inventory account the specific job in process
• B)the specific job in process overhead
• C)a loss account the specific job in process
• D)factory overhead sales

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Definitions:

Market Prices

The current value at which an asset or service can be bought or sold in a competitive marketplace.

Historical Information

Data regarding past events, performance, and decisions in a company or market, used for research, analysis, and strategic planning.

Risk Premium

The additional return expected by an investor for taking on a higher level of risk compared to a risk-free investment.

Treasury Bills

Short-term government securities issued at a discount from the par value and pay no interest before maturing.