What is 'Abnormal Spoilage'

The waste or wrecking of inventory beyond what is expected in normal business processes. Abnormal spoilage can be the result of broken machinery or from inefficient operations, and is considered to be at least partially preventable. In accounting, abnormal spoilage is recorded as a separate item: loss from abnormal spoilage.

Explaining 'Abnormal Spoilage'

Material spoilage is often discovered during the inspection and quality control process. In job costing, spoilage can be assigned to specific jobs or units, or can be assigned to all jobs associated with production as part of the overall overhead.

Further Reading

ABC method. See INVENTORY coNTROL.
link.springer.com [PDF]
… This paper uses an economic analysis to model the determinants of spoilage in the production process and to … The model also generates an expanded variance analysis of spoilage which provides guidance in the investigation and interpretation of abnormal spoilage …

Spoilage of light (PSE-like) and dark turkey meat under aerobic or modified atmosphere package: microbial indicators and their relationship with total volatile basic …
www.tandfonline.com [PDF]
… This paper uses an economic analysis to model the determinants of spoilage in the production process and to … The model also generates an expanded variance analysis of spoilage which provides guidance in the investigation and interpretation of abnormal spoilage …

Bordeaux wine as a financial investment
www.worldscientific.com [PDF]
… This paper uses an economic analysis to model the determinants of spoilage in the production process and to … The model also generates an expanded variance analysis of spoilage which provides guidance in the investigation and interpretation of abnormal spoilage …