MB6-703 · Question #30
You have a bill of materials (BOM) item. All lines of the BOM item use a constant scrap amount and a variable consumption. You identify that when you have a production run of 100 items, the scrap…
The correct answer is C. 220 US dollars. 200* (1+0.10) = 220 Waste that occurs during the manufacturing process. Scrap can occur from mistakes in measuring, as well as from leftover pieces due to trimming or other processes. For example, if a finished good requires 6 cm of wire, you may expect that you will have to…
Question
You have a bill of materials (BOM) item. All lines of the BOM item use a constant scrap amount and a variable consumption. You identify that when you have a production run of 100 items, the scrap cost is 10 US dollars and the unit cost is one US dollar. You need to identify what will be the cost in the BOM calculation when you increase the size of production to 200 units. Which cost should you identify?
Options
- A2,100 US dollars
- B210 US dollars
- C220 US dollars
- D2,200 US dollars
How the community answered
(31 responses)- A3% (1)
- B3% (1)
- C84% (26)
- D10% (3)
Explanation
200* (1+0.10) = 220 Waste that occurs during the manufacturing process. Scrap can occur from mistakes in measuring, as well as from leftover pieces due to trimming or other processes. For example, if a finished good requires 6 cm of wire, you may expect that you will have to scrap 1 cm of the wire for every 6 cm that you use because of splicing.
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