Question

Discuss the treatment of spoilage and defective in cost accounting

Answer 1

Defective goods arise due to sub-standard materials, bad supervision, bad planning of production, poor workmanship, inadequate equipment, careless inspection etc. If the defective production is due to abnormal reasons, the rectification cost is transferred to Costing Profit and Loss Account.

Answer 2

Answer:

Interest in suspense is a particular kind of asset that may appear on a company's -- or even an individual's – balance sheet. It often denotes that a company has money due as the result of a loan, but that its borrower has not paid on the loan per an agreement.