Definition of normal spoilage
Normal spoilage is the unavoidable part of spoilage occurs in a production process. It will occur even the production process is operated with the highest efficiency. That is why it is also known as predetermined or planned spoilage.
Manufacturers typically set a rate of normal spoilage based on their product type. Cost of normal spoilage is included in cost of goods produced. Thus, Good units absorb the cost of normal spoilage.