ABNORMAL SPOILAGE Definition

Bookmark and Share

ABNORMAL SPOILAGE is spoilage that is not part of everyday operations. It occurs for reasons such as the following: out-of-control manufacturing processes, unusual machine breakdowns, and unexpected electrical outages that result in a number of spoiled units. Some abnormal spoilage is considered avoidable; that is, if managers monitor processes and maintain machinery appropriately, little spoilage will occur. To highlight these types of problems so that they can be monitored, abnormal spoilage is recorded in a Loss from Abnormal Spoilage Account in the general ledger and is not included in the job costing inventory accounts (work in process, finished goods, and cost of goods sold).

Learn new Accounting Terms

OVERSIGHT, in management, is overseeing the performance or operation of a person or group; or, generally, an unintentional omission resulting from failure to notice something.

FSA has several possible meanings, e.g. Flexible Spending Account (employee benefit offered by some companies) or Funding Standard Account.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.