Answer
- Spoilage: Spoilage refers to units of production that do not meet the customer's required standards for good units. These units are typically discarded or sold at reduced prices because they do not meet quality expectations.
- Rework: Rework involves units of production that do not initially meet the customer's specifications. However, these units are repaired or reworked to meet the required standards and are then sold as good finished units.
- Scrap: Scrap consists of residual material that remains after manufacturing a product. This material has a low total sales value compared to the total sales value of the product itself. It is often a byproduct of the production process and is typically of little value.
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