Microgiant Corporation produces a variety of household products, such as utensils, paper and plastic dishes, and disposable cutlery. Most production is in a process costing environ- ment. The company has no system for reporting spoilage; it simply assigns all costs to good units leaving a process center. Recently the company gave the new controller instructions to develop a policy for reporting all spoilage to management. You are the new controller. What are some of the items you may want to consider in developing the new policy?