Tag Archives | Overheads Accounting

Notes on Scrap | Materials

The below mentioned article provides a note on scrap. Scrap is the residue material that has a recovery value. It is incidental residue from the materials used in manufacturing operations which is recoverable and measurable without processing. Accounting of Scrap: The accounting treatment of scrap is based on the following considerations: (a) If the value of the scrap is negligible, [...]

By |2016-12-12T08:06:17+00:00December 12, 2016|Overheads|Comments Off on Notes on Scrap | Materials

Notes on Defectives | Materials

The below mentioned article provides a note on defectives. Defectives represent the part of production that does not meet dimensional or quality specifica­tions of a product but which can be reworked by additional application of material, labour and/ or processing and made it into saleable condition either on first or seconds depending upon the characteristic of the product. Causes for [...]

By |2016-12-12T08:06:17+00:00December 12, 2016|Overheads|Comments Off on Notes on Defectives | Materials

Notes on Spoilage | Materials

The below mentioned article provides a note on accounting and control of spoilage. Meaning of Spoilage: Spoilage is the production that fails to meet quality or dimensional requirements and these are so damaged in manufacturing operations that they are not capable of rectification economically and hence taken out of the process and disposed off without further processing. If spoilage is [...]

By |2016-12-12T08:06:17+00:00December 12, 2016|Overheads|Comments Off on Notes on Spoilage | Materials
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