Deducting the disposal value from the costs of the spoiled goods accumulated to the point of inspection equals
A)the net cost of discarded goods.
B)the net cost of reworked goods.
C)the net cost of spoilage.
D)the net cost of scrap.
E)the net cost of disposals.

Question

Quizplus · Accepted Answer

Deducting the disposal value from the costs of the spoiled goods accumulated to the point of inspection gives the net cost of spoilage. This is because the disposal value is subtracted from the total cost of the spoiled goods to get the cost of the products that were actually spoiled and cannot be sold or reworked.

Deducting the Disposal Value from the Costs of the Spoiled