Abnormal Spoilage

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.
References in periodicals archive ?
The accounting section contains more than 60 articles, with topics ranging from "abnormal spoilage" to "trial balance." The articles are generally written at a basic level, but practicing CPAs may find the information helpful in communicating with clients or speaking to student groups, and educators and students may be interested in the examples.
These are considered abnormal spoilage, because of the unexpected nature of the cause, and thus are recorded as scrap.
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.