normal spoilage Definition | Business Dictionaries from
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Business Glossary


Business Definition for: normal spoilage
normal spoilage

product deterioration that is expected even under the best operating conditions. It is inherent and unavoidable in the short run. Costs of normal spoilage are allocated to the remaining good units in inventory. Management establishes anormal spoilage rate that is acceptable under a given combination of production factors. Normal spoilage is a cost of goods produced.

See also abnormal spoilage
Copyright © 2005, 2000, 1995, 1987 by Barron's Educational Series, Inc., Reprinted by arrangement with Publisher.


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