Question

When making scrap or rework decisions, management should consider: (Check all that apply.)a. Revenue from selling defective units as scrapb. Incremental costsc. Lost profit on making and selling new units while reworking defective units

Answer 1

Answer:

revenue from selling defective units as scrap.

incremental costs.

Explanation:

Answer 2

Answer:

The correct answer is all of the above

Explanation:

Scrap or the rework costs are the costs which is incurred in order to repair the   items that are defective. And the decision to rework or scrap an item or product, ground on the benefits or advantage of the incremental costs.

If the reworked units generate or yield greater advantage or benefit rather than the selling them as scrap, then the decision to rework will be considered.

And if the decision of rework is taken, then the management should consider the incremental costs, revenue or profit from selling the defective units as scarp and the lost profit on selling and making the new units while the rework is performed.