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?
A.
210 US dollars
B.
220 US dollars
C.
2,100 US dollars
D.
2,200 US dollars
B.
I’m sure the answer is C.
>> A constant scrap would be an amount lost only once during the run no matter the qty being produced
Sorry, my bed.
I meant “I’m sure the answer is A”.