What is the difference between "scrap" and "defectives"?
What is the difference between "scrap" and "defectives"?
Prabeer (B. COM (H) CA & CS Final) (5484 Points)
11 November 2008
4 Replies
S.Srinivasaraghavan
(Chief Financial Officer and Co)
(11318 Points)
Replied 11 November 2008
Scrap is totally a waste material, where as defective may have turn useful if the defects are corrected.
Prabeer
(B. COM (H) CA & CS Final)
(5484 Points)
Replied 11 November 2008
Dear S.Srinivasaraghavan sir can u further explain these two terms with some good examples?
Jeet Biswas
(ACMA (in Service))
(5073 Points)
Replied 12 November 2008
hav u seen a reputed garment co.s Seconds shop near the place u reside in south kol? the items sold thr, r nothing but products which were defectives & have been corrected and brought into open market. and the tiny pieces & shreds of cloth, which are eliminated during the process of making garments, r scrap items. bcoz they cant b used to make any other productive item.
several examples of these kinds can b found in every manufacturing industry.
Bhargav Narayanan
(Final Year Article)
(26 Points)
Replied 28 January 2009
Hi,
Scrap is that item on which re work is not possible or not viable. Whereas defective is one on which re work is viable. The concept of Viability is a pure costing one wherein the cost of rework is more than the value the resultant product would fetch in the market.
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