Accounting for Spoilage, Rework and Scrap, with Balanced Scorecard

Course Contents, Concepts and Issues:

Spoilage, Rework and Scrap

• Basic Terminology
• Accounting for Spoilage
• Types of Spoilage
• Process Costing and Spoilage
• Inspection Points and Spoilage
• The Five-Step Procedure for Process Costing with Spoilage
• Job Costing and Spoilage
• Job Costing and Accounting for Spoilage
• Job Costing and Rework
• Accounting for Scrap
• Aspects of Accounting for Scrap
• Number of Units of Normal and Abnormal Spoilage Changes, Depending on When Inspection Occurs

Balanced Scorecard: Quality, Time and Theory of Constraints

• Quality as a Competitive Tool
• Two Basic Aspects of Quality
• Quality and Failure
• Four Perspectives of the Balanced Scorecard
• The Financial Perspective: Costs of Quality (COQ)
• Elements of Costs of Quality Reports
• Cost of Quality Exclusions
• The Customer Perspective
• The Internal Business Process Perspective
• Control Charts
• Pareto Diagrams
• Cause-and-Effect Diagrams
• Nonfinancial Measures of Internal Business Process Quality
• The Learning and Growth Perspective for Quality
• Advantages of COQ (Financial) Measures
• Advantages of Nonfinancial Measures of Quality
• Time as a Competitive Tool
• Two Operational Measures of Time
• Time Drivers
• Simple Time Presumptions
• Theory of Constraints and Throughput- Contribution Analysis
• Four Steps in Managing Bottleneck Operations
• Methods to Relieve Bottlenecks
• The Balanced Scorecard and Time-Related Measures