Which of the Following Statements Is True of Scrap

question 145

Multiple Choice

Which of the following statements is true of scrap?

• A) When a production process yields two or more products with high total sales values relative to the total sales values of other products, those are called scrap.
• B) For accounting purpose, distinction is made between normal and abnormal scrap.
• C) Scrap refers to units of production, fully or partially completed, that do not meet the specifications required by customers for good units and are discarded or sold at reduced prices
• D) Scrap is either sold or disposed of quickly or it is stored for later sale, disposal, or reuse.

---

Definitions:

Productivity Increase

A rise in the output of goods or services relative to the input of resources such as time or labor.

Performance Excellence

The achievement of outstanding performance in operations, customer satisfaction, and financial outcomes.

Peters and Waterman

Authors of "In Search of Excellence," a book that presents eight attributes that excellent companies have in common.

Value Chain

This concept describes the full range of activities that businesses go through to bring a product or service from conception to delivery to the final consumer.