When Spoiled Goods Have a Disposal Value, the Net Cost

Multiple Choice

When spoiled goods have a disposal value, the net cost of the spoilage is computed by ________.

A) deducting disposal value from the costs of the spoiled goods accumulated to the inspection point
B) adding the costs to complete a saleable product to the costs accumulated to the inspection point
C) deducting the costs to complete a saleable product from the costs accumulated to the inspection point
D) adding disposal value to the costs of the good units transferred