Which of the following accounting treatment is correct in relation to “Spoilage”?

Q. Which of the following accounting treatment is correct in relation to “Spoilage”?

A.            Loss due to spoilage can be debited to the job /product /process in which it occurred.

B.            It may be charged to factory over-heads so that the loss is borne by all products.

C.            If spoilage occurs on a specific job/ special order, it is charged to that job itself.

D.            All of the above

Answer: All of the above

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