Which of the following statements is false about normal or tolerated spoilage?
A) It is expected as a natural outcome of an imperfect process and counted as a normal cost of good units produced
B) With wide acceptance of quality improvement initiatives, the idea is now in disfavor
C) For external financial reporting purposes, it is normally reported as a separate line item in the income statement
D) Regardless of the treatment and computation, it is usually desirable to internally report spoilage costs as . a separate item for management purposes

Question

Quizplus · Accepted Answer

Normal spoilage is not typically reported as a separate line item in the income statement for external financial reporting; it is usually included in the cost of goods sold.

Which of the Following Statements Is False About Normal or Tolerated