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Spoilage, Rework And Scrap MCQs

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1

If the units of normal spoilage are 150 and the total good units manufactured are 1500, then the normal spoilage rate would be __________?

Option A: 14%

Option B: 15%

Option C: 10%

Option D: 12%

Correct Answer: 10% ✔


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2

An amount of spoilage that is natural in any particular production process is classified as __________?

Option A: normal scrap

Option B: normal spoilage

Option C: abnormal spoilage

Option D: weighted spoilage

Correct Answer: normal spoilage ✔


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3

The residual material which results from manufacturing products is called __________?

Option A: reduced work

Option B: spoilage

Option C: rework

Option D: scrap

Correct Answer: scrap ✔


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4

The normal spoilage is subtracted from total spoilage to calculate __________?

Option A: abnormal spoilage

Option B: Gross weighted spoilage

Option C: inventoriable spoilage

Option D: partial spoilage

Correct Answer: abnormal spoilage ✔


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5

If the transferred out total cost is $1850000 and the number of good units (produced), then the cost per good unit transferred out and completed can be __________?

Option A: 245.1724

Option B: 255.1724

Option C: 278.1724

Option D: 268.1724

Correct Answer: 255.1724 ✔


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6

The production units that do not meet customer specification, but can be sold to other customers as finished goods are classified as __________?

Option A: reduced work

Option B: spoilage

Option C: rework

Option D: scrap

Correct Answer: rework ✔


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7

The sum of beginning work in process inventory units and started units, is subtracted from the sum of ending work in process inventory units and transferred out units of goods, to calculate __________?

Option A: Gross weighted spoilage

Option B: inventoriable spoilage

Option C: partial spoilage

Option D: total spoilage

Correct Answer: total spoilage ✔


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8

The units of normal spoilage are divided to total completed units, rather than total actual produced units to calculate __________?

Option A: normal spoilage rates

Option B: abnormal spoilage rates

Option C: normal scrap rates

Option D: abnormal scrap rates

Correct Answer: normal spoilage rates ✔


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9

The types of spoilage include __________?

Option A: normal spoilage

Option B: abnormal spoilage

Option C: weighted spoilage

Option D: both a and b

Correct Answer: both a and b ✔


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10

The partial or completed units of manufactured goods, that do not meet customer specifications and get sold at reduced price or simply discarded, are called __________?

Option A: spoilage

Option B: rework

Option C: scrap

Option D: equivalence

Correct Answer: spoilage ✔


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11

The type of spoilage, which is considered as controllable and can be avoided is called __________?

Option A: abnormal spoilage

Option B: normal spoilage

Option C: transferred-in spoilage

Option D: transferred-out spoilage

Correct Answer: abnormal spoilage ✔


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12

Total transferred-out cost plus normal spoilage is divided by number of goods units produced, to calculate __________?

Option A: cost per good units transferred out

Option B: cost per good units transferred in

Option C: revenue per good units transferred out

Option D: revenue per good units transferred in

Correct Answer: cost per good units transferred out ✔


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13

The cost of abnormal spoilage is not treated as __________?

Option A: conversion costs

Option B: sunk costs

Option C: inventoriable costs

Option D: non inventoriable costs

Correct Answer: inventoriable costs ✔


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14

The costing, which explains how and when scrap affects the operating income of company is classified as __________?

Option A: inventory costing

Option B: conversion costing

Option C: normal scrap costing

Option D: abnormal scrap costing

Correct Answer: inventory costing ✔


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15

If the beginning work in process inventory units are 2600, units started are 9000, ending work in process units are 2300 and the completed good units are 8000 then total spoilage will be __________?

Option A: 1200 units

Option B: 990 units

Option C: 1100 units

Option D: 1000 units

Correct Answer: 1100 units ✔


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16

The aspects of accounting for scrap includes __________?

Option A: physical tracking

Option B: non-inventoriable costing

Option C: inventory costing

Option D: both a and c

Correct Answer: both a and c ✔


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17

An example of rework is __________?

Option A: short lengths from wood work

Option B: defective aluminum cans recycled by manufacturer

Option C: detection of defective pieces before shipment

Option D: none of above

Correct Answer: detection of defective pieces before shipment ✔


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18

The stage in production process, where the manufactured goods are checked; whether the units are acceptable or not is classified as __________?

Option A: rework point

Option B: inspection point

Option C: spoilage point

Option D: scrap point

Correct Answer: inspection point ✔


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19

An amount of spoilage that is not natural in a specific production process is categorized as __________?

Option A: normal scrap

Option B: normal spoilage

Option C: abnormal spoilage

Option D: weighted spoilage

Correct Answer: normal spoilage ✔


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20

Which one of the following is an example of spoilage?

Option A: short lengths from wood work

Option B: defective aluminum cans recycled by manufacturer

Option C: detection of defective pieces before shipment

Option D: all of above

Correct Answer: defective aluminum cans recycled by manufacturer ✔


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21

In process and job costing system, the normal spoilage cost is considered as __________?

Option A: conversion costs

Option B: sunk costs

Option C: inventoriable costs

Option D: non inventoriable costs

Correct Answer: inventoriable costs ✔


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