The cost associated with abnormal spoilage ordinarily is charged to a special loss account.
Abnormal spoilage is the quantity of waste or destruction of stock that a company reviews past what's predicted in regular enterprise operations or manufacturing processes.
Normal spoilage have to be capitalized into stock because it's miles an inventoriable price and is incurred withinside the regular path of enterprise. Abnormal spoilage is taken into consideration uncommon and have to now no longer be capitalized into stock. Abnormal spoilage has to be expensed withinside the duration incurred.
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