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.

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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.