73 +
4.
Cha&"er 7
The $os" $os" o# a!nor' a!nor'al al loss losses es 5ne" 5ne" o# is&o is&osa sall $os"s6 $os"s6 sho shoul ul !e -ri""e -ri""en n o## o## as
a. !. $. .
Prou$" $o $os" ,es ,es no no
ANS)ER: .
A!nor'al loss ,es ,es no no
ANS)ER:
E A S*
Nor'al loss ,es no no ,es E A S*
I# a!no a!nor' r'al al s&o s&oil ilage age o$$urs o$$urs in in a 0o! 0o! orer orer $os" $os"in ing g s,s"e s,s"e' ' has has a 'a"e 'a"eri rial al olla ollarr %alu %alue e an an is rela"e "o a s&e$i#i$ 0o! "he re$o%er, %alue o# "he s&oile goos shoul !e
a. !. $. .
e!i"e "o a s$ra& in%en"or, a$$ a$$oun" oun" "he s&e$i#i$ s&e$i#i$ 0o! 0o! in &ro$ess a loss a$$oun" #a$"or, o%erhea
ANS)ER: .
$
Perio $os" no ,es ,es no
)hi$ )hi$h h o# o# "he "he #oll #olloo-in ing g -oul -oul #all #all -i"h -i"hin in "he rang rangee o# "olera "oleran$e n$e #or a &rou$ &rou$"io "ion n $,$l $,$le8 e8
a. !. $. .
7.
S&e$ial Prou$"ion Issues: Los" Uni"s an A$$re"ion
a
$rei"e "o "he s&e$ &e$i#i$ 0o! in &ro$es $ess o%erhea "he s&e$i#i$ 0o! in &ro$ess sales
9EDIU9
I# nor'a nor'all s&oi s&oila lage ge is is e"e$ e"e$"e "e a" an an ins ins&e$ &e$"i "ion on &oi &oin" n" -i" -i"hi hin n "he "he &ro$es &ro$esss 5ra"he 5ra"herr "han "han a" a" "he en6 "he $os" o# "ha" s&oilage shoul !e a. !. $. .
in$l n$lue ue -i"h -i"h "he "he $os" $os" o# o# "he "he uni uni"s "s sol sol ur uring ing "he "he &er &erio io. . in$lue in$lue -i"h "he $os" o# "he uni"s $o'&le"e $o'&le"e in "ha" e&ar"'en" uring "he &erio. allo allo$a" $a"e e "o "o eni ening ng -ork -ork in in &ro$es &ro$esss uni uni"s "s an uni" uni"ss "ran "rans# s#err erre e ou" !as !ase e on "heir "heir rela"i%e %alues. allo allo$a $a"e "e "o "o "he "he goo goo uni" uni"ss "ha" "ha" ha% ha%ee &as &asse se "he "he ins& ins&e$ e$"i "ion on &oin &oin". ".
ANS)ER:
9EDIU9
CHAPTER 7 SPECIAL PRODUCTION ISSUES: LOST UNITS AND ACCRETION ACCRETION MULTIPLE CHOICE
1.
Shrinkage shoul !e "rea"e as as a. !. $. .
e#e$"i%e uni"s. s&oile uni"s. uni"s. 'is$ellaneous e(&ense. a reu$"ion o# o%erhea.
ANS)ER: +.
no" no" !e !e sol sol "hr "hrou ough gh nor' nor'al al $han $hanne nells o# is" is"ri ri!u !u""ion. ion. !e sol "hrough nor'al $hannels $hannels o# is"ri!u" is"ri!u"ion. ion. no" no" !e !e re& re&ro ro$e $ess sse e "o a su# su##i$ien" ual uali" i", , le%el e%el.. also !e !e $alle a s& s&oile uni".
ANS)ER:
!
EAS*
A uni" uni" "ha" "ha" is re0e$ re0e$"e "e a" a" a ual uali" i", , $on"rol $on"rol ins& ins&e$" e$"ion ion &oin" &oin" !u" "ha" "ha" $an $an !e re-orke re-orke an an sol is re#erre "o as a a. !. $. .
s&oile uni". s$ra& uni". a!nor'al uni". e#e$"i%e uni".
ANS)ER: 2.
EAS*
E$ono' no'i$all, re-or -orke uni"s 'a, a. !. $. .
/.
!
EAS*
S&oile uni"s are a. !. $. .
uni" uni"ss "ha" "ha" $ann $anno" o" !e !e e$o e$ono no'i 'i$a $alll, re-or re-orke ke "o !ri !ring ng "he' "he' u& "o "o s"an s"anar ar. . uni"s "ha" $an !e e$ono'i$all e$ono'i$all, , re-orke "o !ring "he' "he' u& "o s"anar. "he sa'e as e#e$"i%e uni"s. $onsiere a!nor'al losses.
ANS)ER:
a
EAS*
731
