Worked scenario
Scrap lead collected, weighed roughly, sold in bulk
Exchange in the battery trade is a buying operation, and dealers who never compare allowance with realisation cannot say whether it earns or costs.
3 min read
A customer trades an old battery against a new one. An allowance is given at the counter, and the old unit joins a pile.
Two prices, never compared
What was allowed and what the scrap eventually fetched are both known and never placed side by side, so the allowance policy is set by market convention rather than by the dealer's own numbers.
The pile is inventory
Accumulated scrap has real value and is frequently treated as a nuisance. Valued, it is working capital that should be turned rather than stored until someone needs the space.
What changes
- Exchange units recorded with the allowance given
- Weight and realisation on disposal recorded
- Allowance policy reviewed against actual realisation
- Scrap stock held valued rather than ignored
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