Multiple Choice
In a process costing system the cost of abnormal spoilage should be:
A) prorated between units transferred out and ending inventory.
B) included in the cost of units transferred out.
C) treated as a loss in the period incurred.
D) ignored.
Correct Answer:

Verified
Correct Answer:
Verified
Q50: Management uses predetermined overhead costs when costs
Q51: South River Chemicals Pty Ltd manufactures a
Q52: Where a process has two departments [A
Q53: Operation costing is appropriate for products with
Q54: Equivalent unit calculations are necessary to allocate
Q56: Eldervale Winery produces premium wine in the
Q57: Costs are accumulated by a responsibility centre
Q58: The establishment of predetermined conversion costs for
Q59: In process costing, equivalent units are the
Q60: Process costing systems are suitable for firms