Multiple Choice
Which of the following is true of unit costs of normal and abnormal spoilage when they are detected at the same inspection point?
A) Unit cost of normal spoilage is more than unit cost of abnormal spoilage.
B) Unit cost of normal spoilage is equal to unit cost of abnormal spoilage.
C) Unit cost of abnormal spoilage is more than unit cost of normal spoilage.
D) Addition of unit cost of normal spoilage and unit cost of abnormal spoilage is equal to unit cost of good units produced and transferred.
Correct Answer:

Verified
Correct Answer:
Verified
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