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Examveda

Cost of abnormal spoilage is not treated as

A. conversion costs

B. sunk costs

C. inventoriable costs

D. non inventoriable costs

Answer: Option D

Solution(By Examveda Team)

Cost of abnormal spoilage is not treated as non inventoriable costs. Non-inventoriable cost are costs that are not included in the value of inventory, also known as non-manufacturing overhead. It includes Selling, General and Administrative expenses, and Interest expense.

This Question Belongs to Commerce >> Costing

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