Question

Method of segregation, disposal of scrap

Answer 1

Disposal of scrap when handled in an imaginative manner can result in handsome returns to the organization. An effective disposal requires a compact disposal organization reporting to the materials manager, continuous market survey on the prices of various categories of scrap generated in the plant and constant touch with the industries which generate similar scrap and with the end-users.

Method of segregation:1.Level of Activity Method:

Under this method, the output at two different levels is compared with the corresponding level of expenses.
2.Range Method or High & Low Points Method:

Under this method, the levels of highest and lowest expenses are compared with one another in relation to output available for those periods.