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Eldervale Winery Produces Premium Wine in the Hunter Valley

Question 56

Multiple Choice

Eldervale Winery produces premium wine in the Hunter Valley. Jasmine Droll, the vineyard manager who is responsible for overseeing the grape harvest, ignores company guidelines and decides to hire some inexperienced harvest workers. As a result a lot of good grapes are wasted. For the purpose of product costing, the losses associated with this grape wastage should be treated as


A) unethical spoilage.
B) abnormal spoilage.
C) normal spoilage.
D) overhead labour costs.

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