Bits of Direct Material Left Over from Normal Manufacturing Processes

question 108

Multiple Choice

Bits of direct material left over from normal manufacturing processes are called:

• A) Scrap
• B) Normal spoilage
• C) Abnormal spoilage
• D) Rework

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Definitions:

Perfectly Competitive Industries

Industries in which many firms produce identical products, and entry and exit are easy, leading to zero economic profit in the long run.

Homogeneous Product

A product that is considered identical or equivalent by consumers, with no significant differences from other products in the market.

Free Exit

The condition in a market where firms can leave the industry without incurring high costs, facilitating competition and economic efficiency.

Perfectly Competitive Firm

A company that operates in a market where there are many buyers and sellers, all selling homogeneous products, with no single party having market control.