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Abnormal Spoilage

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Abnormal Spoilage
Spoilage, or waste, of a product that occurs due to inefficiency in the process of making that product. Unlike normal spoilage, it is recorded on a balance sheet as a loss rather than a cost. While normal spoilage is seen as inevitable, companies seek to create processes to reduce or eliminate abnormal spoilage.


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THE END SUMMARY OF THE CASE The fable reinforces and/or introduces many concepts of process costing including normal and abnormal spoilage and materials introduced in terms of output and could be adapted to a form similar to the text used in the course.
 
 
 
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