Use the Information Below to Answer the Following Question(s)

question 127

Multiple Choice

Use the information below to answer the following question(s) .Craft Concept manufactures small tables in its Processing Department.Direct materials are added at the initiation of the production cycle and must be bundled in single kits for each unit.Conversion costs are incurred evenly throughout the production cycle.Before inspection, some units are spoiled due to non-detectable materials defects.Inspection occurs at the end of the process.Spoiled units generally constitute 5 percent of the good units.Data for December are as follows:

-The goal of separately identifying abnormal spoilage is to

• A)properly cost units in the system.
• B)assist in performance measurement.
• C)ensure that such units do not reach finished goods inventory.
• D)reduce abnormal spoilage to an acceptable level.
• E)reduce abnormal spoilage to nil.