Cost Accounting – 12^th Edition

Ch 18 Terms

Abnormal spoilage – Spoilage that would not arise under efficient operating conditions; it is not inherent in a particular production process.

Inspection point – Stage of the production cycle at which products are examined to determined whether they are acceptable or unacceptable units.

Normal spoilage –Spoilage inherent in a particular production process that arise even under efficient operating conditions.

Rework –Units of production that do not meet the standards required by customers for finished units that are subsequently repaired and sold as acceptable finished units.

Scrap– Material leftover when making a product.

Spoilage – Units of production that do not meet the standards required by customers for good units and that are discarded or sold for reduced prices.