CA Inter P4 · Chapter 8 · Question 6 of 9
In job costing, the cost of spoiled work that is normal and arises because of the exacting specifications of a particular job should be:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Charged to that particular job
Explanation
Where spoilage is caused by the special requirements of a specific job, it is part of the cost of that job and is charged to it (net of any scrap value). Normal spoilage common to all jobs is included in production overheads, while abnormal spoilage is written off to the Costing Profit and Loss Account.
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