Answered: a) Briefly describe the treatment of…

Business

Accounting

a) Briefly describe the treatment of Joint Costs when making a sell-or-process-further decision.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 11Q: What is a general rule to remember with respect to a sell-or-process-further environment, and what...

See similar textbooks

Related questions

Q: Is

Q: Are allocated joint processing costs relevant when making a decision to sell a joint product at the…

A: Definition: Joint production process: A joint production process results in two or more products,…

Q: When pricing products and using cost-plus pricing, which type of cost is perceived to be the safest…

A: In absorption costing , fixed manufacturing overhead will be included in stock valuation where as in…

Q: What are joint costs? How do they affect the sell or process further decision?

Q: “ Managers must decide whether a product should be sold at splitoff or processed furthur.The sales…

A: No, any method that is used to assign costs to individual products that is applied to the problem of…

Q: When making outsourcing decisions, which of the following is true? a. Expected use of the freed…

A: When making decision on make or buy decision or which are otherwise called as Outsourcing decisions,…

Q: Briefly describe the treatment of Joint Costs when making a sell-or-process-further decision. What…

A: Joint costs are the costs which are incurred jointly in the production process for two or more…

Q: The focus of a sell or process further decision is Select one: a. incremental cost. O b. incremental…

A: Introduction: Incremental cost : Its an extra cost for producing the unit.

Q: State the uses of Marginal Costing technique in decision making process. How CVP( cost volume…

A: CVP refers to cost volume profit analysis. It is calculated to find out the break-even

Q: “Sunk costs are considered by a manufacturer in decision making”. Do you agree? Explain.

A: "Sunk costs are considered by a manufacturer in decision making”. I do not agree with this…

Q: The following costs arise in relation to production of a new product: (i) Research and…

A: Lifetime cost of product includes total cost incurred over it's life time from designing,…

Q: What problems can arise if you use the results of your full costing approach for decision…

A: Below is the answer

Q: Which costs assignment method would you use to assign prime costs to a product: a.direct tracing…

A: Prime cost: prime cost is total of direct cost that is direct material, direct labor and direct…

Q: The following are approaches in allocating joint costs incurred up to split off point, except: a.…

A: Solution: The following are approaches in allocating joint costs incurred up to split off point,…

Q: Which of the following statements best describes a by-product? Multiple Choice A product created…

A: A by-product is comparably lesser in terms of the total amount and is derived incidentally from the…

Q: Which of the following would not be a period cost? Group of answer choices Sales commissions.…

A: Period costs include those costs which cannot be directly associated with the manufacturing of the…

Q: “A component part should be purchased whenever the purchase price is less than its total…

A: Operating Income:Operating income is income which is earned by carrying out the regular business…

Q: “Relevant costs for pricing decisions are full costs of the product.” Do you agree? Explain.

A: Pricing Decisions:Pricing decisions are those decisions that are related to ascertain the price of a…

Q: Costs that will differ between alternatives and influence the outcome of a decision are Select one:…

A: The cost that will differ between alternatives and influence the outcome of a decision is referred…

Q: Managers must decide whether a product should be sold at splitoff or processed further. The sales…

A: Joint cost is the cost of assembling, that is incurred by an organization on a joint creation…

Q: Which of the following methods allocates joint costs based on the potential market value at the…

A: Joint cost represents the cost incurred by the business in a joint process. In such process, single…

Q: sed on your analysis in requirement 1, which product or products should be sold at the split-off…

A: A split-off point occurs when formerly jointly created components are now manufactured separately,…

Q: In Make or buy decision ,irrelevant costs are : Select one: a. manufacturing costs that will be…

A: Under make or buy decision, decision needs to taken whether we should manufacture the product or…

Q: Which among the following is not a relevant cost for decision making? a. Cost of producing…

A: Relevant Cost refers to the incremental and avoidable cost of implementing a business decision.…

Q: TRUE OR FALSE The general principle in determining the number of cost pools is that a separate cost…

A: Solution: The general principle in determining the number of cost pools is that a separate cost pool…

Q: Which of the following choices correctly denotes the data needed to allocate joint costs under the…

A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…

Q: as they are removed from the joint-processing center, what value will be assigned to by-products…

A: A by-product is a product that is a small outcome of a production process and has minimal sales,…

Q: A decision that involves potential further processing of joint products is which kind of decision?…

A: Introduction: - One of the most important Decisions relating to dropping existing products or adding…

Q: For each of the following items, identify which of the managementaccounting guidelines applies:…

A: Planning and Control Decision: Planning decisions involves selecting organization goals, estimating…

Q: 1. Select two decisions-one common to a manufacturer and the other common to a service…

A: Manufacturing Entity: A manufacturing business is defined as any firm that manufactures completed…

Q: A cost - based transfer price considers the cost of producing the goods when determining the price.…

A: At the time of determining the prices of the goods, the cost of goods-producing is required to be…

Q: Briefly describe the treatment of Joint Costs when making a sell-or-process-further decision.

A: Dear student, as per Bartleby answering guidelines we can not answer more than one question if…

Q: Costs that will differ between alternatives and influence the outcome of a decision ar Select one: O…

A: Relevant costs are the managerial costs that are incurred only to make specific business decisions.…

Q: Allocating costs for joint products can be done by: a. Sales Value Approach O b. Contribution Margin…

A: Joint Products:- Joint products are defined as the products that are produced in a single production…

Q: When using a standard cost system what term is referred to what a product does cost? Group of answer…

A: Standard cost is the term used for the product should cost. Actual cost is the term for the product…

Q: Company A is currently manufacturing a component but is considering buy reliable supplier. Which of…

A: The avoidable fixed cost is the cost that does not change with the output but can be avoided in…

Q: In Make or buy decision ,relevant costs are : Select one: a. manufacturing costs that will not be…

A: This question deal with the relevant costing concept and make or buy concept. As per the concept,…

Q: What considerations should managers make when deciding whether to sell a product as-is or after…

A: One of the decisions related to the product is to sell or process further. There are certain factors…

Q: Using a physical measurement method, what amount of joint processing cost is allocated to product B?…

A: Cost accounting is one of the branches of accounting. Under this branch, all types of costs incurred…

Q: a. What amount of joint product cost would be allocate to each product? b. What is financial…

A: Lets understand the basics. For allocating joint process cost, there are various methods are…

Question

a) Briefly describe the treatment of Joint Costs when making a sell-or-process-further decision.

b) What is the decision rule in deciding whether to sell a product or process it further?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

What is a general rule to remember with respect to a sell-or-process-further environment, and what costs are irrelevant to the decision?
For which cost concept used in applying (he cost-plus, approach to product pricing are fixed manufacturing costs, fixed selling and administrative expenses, and desired profit allowed for in determining the markup? A. Total cost B. Product cost C. Variable cost D. Standard cost
Why are there objections to using absorption costing when segment reports of profitability are being prepared?
Can direct materials ever be irrelevant in a make-or-buy decision? Explain. Give an example of a fixed cost that is relevant.
Costs that cannot be affected by any future action are called a. differential costs. b. sunk costs. c. inventory costs. d. relevant costs. e. joint costs.
If the minimum transfer price of the selling division is less than the maximum transfer price of the buying division, the intermediate product should be transferred internally. Do you agree or disagree? Why?
Although the cost-plus approach to product pricing may be used by management as a general guideline, what are some examples of other factors that managers should also consider in setting product prices?
Briefly describe the treatment of Joint Costs when making a sell-or-process-further decision. What is the decision rule in deciding whether to sell a product or process it further?
What are joint costs? How do they affect the sell or process further decision?
Which of the following statements is true? An avoidable fixed production cost incurred before the split-off point in a joint process is relevant in a sell or process further decision. It is profitable to continue processing joint products after the split-off point if their total revenues exceed the joint costs. Which of the following statements is true? Consistency demands that a cost that is relevant in one decision be regarded as relevant in other decisions as well. Variable costs are always relevant costs in decisions.
“Sunk costs are considered by a manufacturer in decision making”. Do you agree? Explain.
The decision of whether to process products beyond the splitoff process should be based on which of the following? Select one: a. Production cost analysis b. Revenue analysis c. Incremental operating income attainable beyond the splitoff point d. Relevant cost analysis e. Gross margin analysis