Answer (B) is correct . The units that failed inspection are classified as normal scrap because they have minimal value and can be sold without further reworking. The defective units are less than the 4% tolerance limit for normal spoilage (5,000 defective units ¡Â 200,000 total units = 2.5%, < 4% tolerance limit). Scrap can be sold, disposed of, or reused.
Answer (A) is incorrect because Abnormal spoilage is not a normal result of efficient operations. In this case, the percentage of spoiled units is within the normal tolerance limit.
Answer (C) is incorrect because Reworked units are defective units that require further processing for them to be sold. This company does not rework defective units.
Answer (D) is incorrect because Waste has no monetary value and may have a disposal cost associated with it.
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The units that failed inspection during the current month would be classified by Ramseur as
