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 [...]
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 [...]
The below mentioned article provides a note on production overhead. The production cost is inclusive of all direct material, direct labour, direct expenses and manufacturing expenses. The manufacturing expenses is inclusive of all indirect materials, indirect labour and indirect expenses concerned with manufacturing activity which starts with supply of materials and ends with primary packing of the product. Production cost [...]