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Unformatted text preview: of each spoiled unit. This cost of the spoiled unit is the cost to process that unit up to the point in production where the spoilage occurred or was identified. Then, the total cost of the spoiled units is the cost of one spoiled unit multiplied by the number of units spoiled. In some cases, spoiled units are not totally worthless. Although the units are not good enough to meet the quality requirements, they may be able to be sold, even if at a bargain price. The revenue generated from these sales can offset, or even eliminate, the loss from spoilage. Jack Cost Accounting. Foundation and Evolutions. Michael R. Kinney and Cecily A. Raiborn...
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- Fall '10