ACCO 330 - CHPT 16 - Course 5 - TK

ACCO 330 - CHPT 16 - Course 5 - TK - ACCO 330 Cost...

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ACCO 330 – Cost Accounting Process Costing with Spoilage and Rework 1 Course outline 1. Spoilage 2. Rework 3. Zero-Defect Policy
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ACCO 330 – Cost Accounting Process Costing with Spoilage and Rework 2 1. Spoilage Some portion of production will have to be scrapped Spoilage results of accidents, machine malfunctions, poor workmanship, substandard materials Normal spoilage is the unavoidable spoilage that results from the normal production process is charged to inventory Abnormal spoilage is the difference between actual and normal spoilage; it is written as a gain or loss for the period
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ACCO 330 – Cost Accounting Process Costing with Spoilage and Rework 3 2. Rework Goods rejected at inspection are not scrapped or sold as is; they are returned to be repaired or reassembled into a good unit The additional effort to put the unit back into acceptable condition is called rework Rework is accounted as Normal rework – charged to inventory Abnormal rework – which is charged as a gain or loss
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This note was uploaded on 01/24/2011 for the course ACCO 330 taught by Professor Mastromonaco during the Fall '10 term at Concordia Canada.

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ACCO 330 - CHPT 16 - Course 5 - TK - ACCO 330 Cost...

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