Cost

Front 1

Scrap

Back 1

It is the residue of manufacturing process.

These are materials left over when making a product.

Front 2

Low or immaterial

Back 2

If the value of scrap is ___________, the simplest accounting is to make a notation of the quantity of scrap returned to the storeroom and to record the scrap sales.

Front 3

Material

Back 3

When the value of scrap is _______ and the scrap is sold quickly after it is produced, the accounting depends on whether the scrap is attributable to a specific job or common to all jobs.

Front 4

Waste

Back 4

It is the amount of raw materials left over from a production process for which there is no further use.

Front 5

Spoiled goods

Back 5

Good that have been damaged through imperfect machining or processing.

Front 6

Spoilage attributable to a specific job

Back 6

Spoilage that occurs due to customers specification.

Front 7

Spoilage common to all jobs

Back 7

Spoilage that occurs due to internal failure such as employee's error or worn-out machinery.

Front 8

Defective goods

Back 8

Units of production that fail to meet production standards but that can be brought up to standard by adding more materials, labor, and overhead.

Front 9

Rework costs

Back 9

Additional cost required to bring these goods up to standard.