In theory, in business, a transaction should go smoothly for both parties. From manufacturing the product to receiving it from the customer, things usually go wrong in the process, like for example, during the t-shirt manufacturing process, an overconfident new employee believes he can print the designs and the company logo on the shirt. However, he makes a mistake. Now, what can the company do with the shirts that don't meet company standards? Depending on the industry you are involved in: every business will encounter these types of situations and will not know how to properly explain the loss of stock or product. In the general inventory section, unsaleable products fall into three main categories: spoilage, rework, and scrap. Depending on how the business is run, they fall into one of the following categories. Spoilage concerns products that do not meet company or customer specifications. The product is either thrown away or sold at a reduced price. Deterioration falls into two different groups, normal and abnormal deterioration. Abnormal deterioration is deterioration that is not related to the production process and would not result from efficient operating conditions. Abnormal deterioration can be avoided because if everything went according to plan or process, there should have been no deterioration. An example of abnormal spoilage would be if an ice cream company produced a massive batch of mixture. During the usual routine process, the machines break down. All the ice that was being mixed is now wasted. However, if the mixer had not broken down, no wastage of materials could have been avoided. The cost of abnormal deterioration is treated as an expense. On the other hand, we have...... middle of paper...... acturing Overhead Control.When we are in business, any avoidable cost, measures will be taken to ensure that unnecessary costs do not occur not. For example, when a company has scrap records, the management team's goal would be to optimize all material usage. On the other hand, in the event of abnormal deterioration, if all the machines were well maintained, they would not break down, which would allow the company not to lose materials. With redesigning, communication is key. The basic idea of ​​entrepreneurship is what the customer wants, he gets it at the right price. According to the contract originally made, if they want the product to be dark blue, he expects to receive the dark blue product. If the company puts proper controls in place, it can avoid many unnecessary costs, causing it to keep more cash at the end of the year..