Manufacturers may track scrap to determine whether:

Question

Quizplus · Accepted Answer

Tracking scrap helps manufacturers determine whether their resources are being efficiently used. If there is a lot of scrap, it could indicate that the manufacturing process needs to be improved to reduce waste and increase efficiency. Additionally, tracking scrap can help identify potential quality control issues that need to be addressed to ensure the final product is of high quality. While machines may need to be replaced if they are causing excess scrap, this is not the primary reason for tracking scrap. Job costs and cash flow forecasts are not directly related to scrap tracking.

Manufacturers May Track Scrap to Determine Whether