Terminology. A number of terms are listed below: Abnormal spoilage.....inspection point Normal spoilage..... rework scrap REQUIRED Select

Question:

Terminology. A number of terms are listed below:
Abnormal spoilage.....inspection point
Normal spoilage..... rework scrap
REQUIRED
Select the terms from the above list to complete the following sentences.
There is no perfect machine, nor is there a perfect manufacturing process. That is why each process has at least one ________________to assess the output quality and send the units back for ______and ultimately on for sale, or_____ them. Costs of reworked units are non-value-added for the customer who will, therefore, not pay for them. The company bears this cost. The difference between _________________ and _______________ is in accounting for the costs.
_______________is predictable but unavoidable; therefore, allows this cost in cost of goods manufactured. _________________ is avoidable but unpredictable and requires this cost be expensed. These costs did not produce an asset from which future revenue will be recovered and therefore are not part of cost of goods manufactured.
GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...