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.