Microsoft MB-335 Exam - Topic 5 Question 36 Discussion

Actual exam question for Microsoft's MB-335 exam

Question #: 36
Topic #: 5

A company produces rubber hose. Discrete orders accounts for raw material scrap. The scrap is reported through inventory movement journals.

The company has noticed that most of the scrap that is recorded is due to start up that feeds the hose to the finishing process. In addition, the amount of scrap that is recorded is consistent regardless of the amount of hose being produced.

You need to account for material lost during startup.

What should you do?

AEnter the amount of scrap that is consumed as constant scrap in the Bill of materials

BDo a case study for the scrap items and enter The average amount of scrap as a separate line items on the Sill of materials.

CEnter the consumption amount on the line to match the actual amount used.

DEnter the amount of scrap that is consumed as variable scrap in the Bill of materials.

Show Suggested Answer

Suggested Answer: A

by Dustin at Nov 17, 2024, 02:06 AM

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Gennie

3 months ago

D sounds interesting, but is it really variable?

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Bok

3 months ago

C is definitely the way to go, match actual usage!

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Bo

3 months ago

Wait, how can scrap be constant if production varies?

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Vallie

4 months ago

Not sure about that, B seems better for tracking.

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Yvonne

4 months ago

I think option A makes the most sense.

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Evette

4 months ago

Option D sounds interesting since it refers to variable scrap, but I’m a bit confused about how that would apply to the consistent scrap we see during startup.

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Dorian

4 months ago

I'm leaning towards option C because it mentions matching the actual amount used, but I feel like I need to double-check how that relates to startup processes.

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Lore

4 months ago

I remember a practice question where we had to account for scrap, and I think option B could be relevant since it suggests analyzing the scrap items.

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Willow

5 months ago

I think option A makes sense since it talks about constant scrap, but I'm not entirely sure if that's the best way to handle startup losses.

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Nobuko

5 months ago

Hmm, this is an interesting one. I'm leaning towards option B, where I would do a case study on the scrap items and enter the average amount as a separate line item. That way, I can track the scrap more closely and make adjustments as needed.

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Horace

5 months ago

Okay, I think I've got this. Since the scrap is consistent and not tied to production volume, the best approach would be to enter it as a constant scrap amount in the bill of materials. That way, it will be accounted for accurately in the cost calculations.

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Alease

5 months ago

I'm a bit confused by this question. It seems like there are a few different options, and I'm not sure which one is the best approach. I'll need to think through the implications of each choice carefully before deciding.

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Cathrine

5 months ago

This seems like a straightforward question about accounting for material scrap in a manufacturing process. I think the key is to understand that the scrap is consistent regardless of production volume, so it should be treated as a fixed cost rather than a variable one.

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