When spoiled goods have a disposal value, the net cost of the spoilage is computed by

ACCOUNTING

Multiple Choice

When spoiled goods have a disposal value, the net cost of the spoilage is computed by

a. deducting disposal value from the costs of the spoiled goods accumulated to the inspection point.

b. adding the costs to complete a salable product to the costs accumulated to the inspection point.

c. calculating the costs incurred to the inspection point.

d. none of the above.

Click here for the SOLUTION