Question: Which one of the following is an example of spoilage?

• 1. short lengths from wood work
• 2. defective aluminum cans recycled by manufacturer
• 3. detection of defective pieces before shipment
• 4. all of above

Question: An amount of spoilage that is not natural in a specific production process is categorized as ____________?

• 1. normal scrap
• 2. normal spoilage
• 3. abnormal spoilage
• 4. weighted spoilage

Question: The stage in production process, where the manufactured goods are checked; whether the units are acceptable or not is classified as __________?

• 1. rework point
• 2. inspection point
• 3. spoilage point
• 4. scrap point

Question: An example of rework is ____________?

• 1. short lengths from wood work
• 2. defective aluminum cans recycled by manufacturer
• 3. detection of defective pieces before shipment
• 4. none of above

Question: The aspects of accounting for scrap includes __________?

• 1. physical tracking
• 2. non-inventoriable costing
• 3. inventory costing
• 4. both a and c

Question: If the beginning work in process inventory units are 2600, units started are 9000, ending work in process units are 2300 and the completed good units are 8000 then total spoilage will be ____________?

• 1. 1200 units
• 2. 990 units
• 3. 1100 units
• 4. 1000 units

Question: The costing, which explains how and when scrap affects the operating income of company is classified as ___________?

• 1. inventory costing
• 2. conversion costing
• 3. normal scrap costing
• 4. abnormal scrap costing

Question: The cost of abnormal spoilage is not treated as _____________?

• 1. conversion costs
• 2. sunk costs
• 3. inventoriable costs
• 4. non inventoriable costs

Question: Total transferred-out cost plus normal spoilage is divided by number of goods units produced, to calculate ___________?

• 1. cost per good units transferred out
• 2. cost per good units transferred in
• 3. revenue per good units transferred out
• 4. revenue per good units transferred in

Question: The type of spoilage, which is considered as controllable and can be avoided is called _____________?

• 1. abnormal spoilage
• 2. normal spoilage
• 3. transferred-in spoilage
• 4. transferred-out spoilage