If Normal Spoilage Is Presumed to Occur Prior to a Specific

question 104

Multiple Choice

If normal spoilage is presumed to occur prior to a specific inspection point, and abnormal spoilage is detected at other inspection points

• A)unit costs of abnormal spoilage will differ from the unit cost of normal spoilage.
• B)all spoilage will be recognized proportionately across the various inspection points.
• C)abnormal spoilage will generally be less than normal spoilage.
• D)normal spoilage costs may be allocated prior to inspection of the products and abnormal spoilage will be allocated after the inspection of the products.
• E)unit cost of abnormal spoilage will be the same as unit costs of normal spoilage.

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