Question

Spoilage refers to ________.

A) units of production that do not meet the specifications required by customers but that are subsequently repaired and sold as good finished units.
B) units of production whether fully or partially completed, that do not meet the specifications required by customers for good units and are discarded or sold at reduced prices.
C) residual material that results from manufacturing a product.
D) products of a joint production process that have low total sales values relative to the total sales value of the main product.

Answer 1

B) units of production whether fully or partially completed, that do not meet the specifications required by customers for good units and are discarded or sold at reduced prices.

Step-by-step explanation:

The spoilage units are units that are not as per customer demands. It can be in sizing issue, quality, quantity, dispatched it at a later date, etc.

Such spoilage units treatments are destroyed or sold at very fewer prices. It can not be further sold as a finished good, neither it is a joint product.

Hence, option b is correct