Which of the following defines spoilage?
A) units of production that do not meet the specifications required by customers but that are subsequently repaired and sold as good finished units
B) units of production whether fully or partially completed, that do not meet the specifications required by customers for good units and are discarded or sold at reduced prices
C) residual material that results from manufacturing a product
D) products of a joint production process that have low total sales values relative to the total sales value of the main product

Question

Quizplus · Accepted Answer

Spoilage refers to the units of production that do not meet the specifications required by customers for good units and are either discarded or sold at reduced prices. Option A refers to products that have been repaired and sold as good units, so it does not qualify as spoilage. Option C refers to residual material that results from the manufacturing process, rather than units of production. Option D refers to products of a joint production process that have low sales value, and hence, is not a definition of spoilage.

Which of the Following Defines Spoilage