Which of the Following Statement Is True of Costs of Normal

Multiple Choice

Which of the following statement is true of costs of normal and abnormal spoilage?

A) Costs of normal spoilage are shown as an asset in a balance sheet; however, abnormal spoilage costs are shown as liabilities in a balance sheet.
B) Costs of abnormal spoilage are shown as an asset in a balance sheet; however, normal spoilage costs are shown as liabilities in a balance sheet.
C) Costs of abnormal spoilage are separately accounted for as losses of the accounting period in which they are detected.
D) Costs of normal spoilage are separately accounted for as losses of the accounting period in which they are detected.