The information below is about my an accounting column could you help me critique and summarize this post:

During the production process, spoilage, rework, and scrap occurs. Companies work to minimize the amount that occurs due to the financial impact that can result from it. Spoilage is what occurs during the production process that does not meet the standards wanted for the good being produced. These products are defective due to something that went wrong or didnt happen during the production. Rework are products that were potentially defective after going through the production process but were able to be reworked and were able to be sold. Scrap is the residual from a product during production that is not targeted for sale purposes.

As part of manufacturing spoilage, there is normal and abnormal spoilage. Normal spoilage occurs when the production process is carried out efficiently. This type of spoilage is inherent during production. Because of this, they are considered part of the cost of goods, and therefore their costs are inventoried. They are inventoried as cost of goods units completed. To compute the cost of goods for normal spoilage, you divide the number of units that were the resulting normal spoilage by the total goods units completed. Abnormal spoilage occurs during inefficient operating conditions. This type of spoilage is considered controllable and avoidable. Machinery breakdowns or operator errors can cause abnormal spoilage. Abnormal spoilage is accounted for as an expense. The expense account used is a separate line item on the income statement called Loss from Abnormal Spoilage.

Abnormal spoilage has a negative impact on the income statement. An ethical issue inherent in determining if spoilage is normal or abnormal is management trying to pass off abnormal spoilage as normal to avoid having it expensed. This obviously can lead to further ethical issues by the product knowingly being sold when it is defective or possibly dangerous to the consumer.