Question

Abnormal spoilage arises:

I. As part of regular operations

II. From out-of-control processes

III. From unusual circumstances, such as flooding that interrupts work

Answer 1

Correct Answer is : (I) As part of regular operations

Explanation

Abnormal spoilage means waste which is beyond the normal loss in regular production. Abnormal spoilage may be due to machine breakdown, low-quality material, etc.

for example: if we input 100 units of material out of which 25% is expected to be waste, where the actual product is 70 units. therefore normal loss = 25 units , actual loss unit = 30 units (100-70). hence abnormal loss unit =5 units (30-25) which is abnormal spoilage of material.