You have a bill of materials (BOM) item. Ten percent of one of the BOM components is wasted during the manufacturing process. You need to ensure that the cost calculation for the BOM item is…

The correct answer is B. Set the Constant scrap field on the component BOM line to 10. Specify constant scrap when you know, or have calculated, that a quantity of bill of materials (BOM) items will be lost or rejected during production. For example, you can apply constant scrap to the setup of a machine if you know that material will be always be wasted before a…

Set up and Configure Inventory Management

Question

You have a bill of materials (BOM) item. Ten percent of one of the BOM components is wasted during the manufacturing process. You need to ensure that the cost calculation for the BOM item is accurate. What should you do?

Options

ASet the Variable scrap field on the component BOM line to 10.
BSet the Constant scrap field on the component BOM line to 10.
CSet the Consumption is field on the component BOM line to variable.
DSet the Consumption is field on the component BOM line to constant.

How the community answered

(32 responses)

A
9% (3)
B
81% (26)
C
6% (2)
D
3% (1)

Explanation

Specify constant scrap when you know, or have calculated, that a quantity of bill of materials (BOM) items will be lost or rejected during production. For example, you can apply constant scrap to the setup of a machine if you know that material will be always be wasted before a usable product is produced.

Topics

#BOM components#constant scrap#cost calculation#variable consumption

Community Discussion

No community discussion yet for this question.

Full MB6-703 Practice