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Asked Dec 17, 2019
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Distinguish among spoilage, rework and scrap.

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Spoilage: Spoilage is the defective item at intermediate or final stage. The spoilage goods cannot be modify and hence as it is sold in the market at less prices. Basically it is loss to the company even if it sells in the market the cost price will not recovered from that.

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Rework: Rework is that type of product that is not satisfy the ultimate needs of the consumer but by some rework in that goods it will be sold in the market and now fulfills the demand of customers.

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Scrap: Scrap is basically the residual material that left after the manufacturing of a product. Scrap material will be recycled and then it is sold to the consumers.

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Accounting

Financial Accounting

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