3.8 Rejects and Rectification
The word reject as a verb means to discard or not accept. It, as a noun means a product
that has not been accepted by the industry manufacturing it on account of several reasons.
In the present situation which is characterised by intense competition, it is the challenge
faced by any industry to sell high quality goods at competitive prices. Therefore, industries
install a system of quality check which checks the products for their quality before being
released into the market for sales. There are many parameters on which such checks are
Any product which does not confirm to the expected level of standards will not be accepted
by the quality control system. Such products are called rejects.
There are several ways of dealing with rejects. Rejects can be discarded and just thrown
away. Rejects can be sold as a seconds, at price much lesser than the normal selling price.
Rejects can be rectified, brought up to the level of the requisite standards and sold at the
Reasons for products becoming rejects
Use of inferior quality raw materials
Absence of supervision
Outdated machines and designs
Poor working conditions
Improper designing of the products
A rapid rate of production to meet deadlines
Absence of quality control
This is the process of correcting rejects and making them fit for sale as other products. This
involves finding out the flaws in the products and correcting them. This however involves
cost. The cost could be on account of additional materials required, additional labour and
additional other expenses.
The total of such costs is called cost of rectification.
The cost of rectification has to be properly treated. The following are the methods of treating
1) The rectification cost is added to the total cost of a specific job or process to which
the rejects belong.
2) The rectification cost can be treated as a general overhead.
3) The cost can be directly debited to the costing profit and loss account.
4) The cost of rectification can be subtracted from the wages of the workers if it can be
proved that the rejects arose because of their negligence.