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.
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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.