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Commerce · Q728

Costing

Graduate and Post Graduate · Commerce · question 728

Q728

Partial or completed units of manufactured goods, that do not meet customer specifications and get sold at reduced price or simply discarded, are called

A.
spoilage
Answer
B.
rework
C.
scrap
D.
equivalence

Answer: Option A

Solution

Answer: Option A
Solution:
Partial or completed units of manufactured goods, that do not meet customer specifications and get sold at reduced price or simply discarded, are called spoilage. Spoilage is waste or scrap that occurs during the manufacturing process.