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NEW QUESTION: 1
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?
A. Set the Constant scrap field on the component BOM line to 10.
B. Set the Variable scrap field on the component BOM line to 10.
C. Set the Consumption is field on the component BOM line to constant.
D. Set the Consumption is field on the component BOM line to variable.
Answer: A
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.