The partial or completed units of manufactured goods, that do not meet customer specifications and get sold at reduced price or simply discarded, are called ____________?
Correct answer: D. spoilage
- A. equivalence
- B. rework
- C. scrap
- D. spoilage
Explanation
Spoilage consists of partially or fully completed units that fail specifications and cannot be economically corrected, so they are discarded or sold at a reduced price. Rework, by contrast, involves correcting defective units.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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More Cost Accounting questions
The types of spoilage include ___________?
The units of normal spoilage are divided to total completed units, rather than total actual produced units to calculate ____________?
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The type of spoilage, which is considered as controllable and can be avoided is called _____________?
Total transferred-out cost plus normal spoilage is divided by number of goods units produced, to calculate ___________?
The costing, which explains how and when scrap affects the operating income of company is classified as ___________?