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Harriet Has Been Reviewing the Accounting System for Her Company

question 25

Essay

Harriet has been reviewing the accounting system for her company and she is very concerned about the accounting for spoilage. It appears that spoilage is accounted for only at the end of the processing cycle. While this concept is acceptable in general, Harriet believes that a better method can be found to properly account for the spoilage when it occurs. She believes that there must be something better than the weighted-average method of accounting for spoilage. She would like the company to use a method that provides closer tracking of the spoilage with the accounting for the spoilage.
Required:
Discuss the problems Harriet is having with the accounting system.


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A classification used in social sciences to categorize and analyze various forms of governance, ideologies, or political movements.

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The lineage or hereditary descent of an individual or group, often traced through genealogy.

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