Joint (common) costs in a joint production process are relevant for determining: Multiple Choice Which products should be produced internally and which products should be outsourced. The selling price of individual products produced as part of the joint production process. Which products should be produced up to the split-off point in the production process. Whether to produce at all. The set of products that should be subjected to additional processing.

Joint (common) costs in a joint production process are relevant for determining: Multiple Choice Which products should be produced internally and which products should be outsourced. The selling price of individual products produced as part of the joint production process. Which products should be produced up to the split-off point in the production process. Whether to produce at all. The set of products that should be subjected to additional processing.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 14MC: Activity-based costing is preferable in a system: when multiple products have similar product...

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Activity-based costing is preferable in a system: when multiple products have similar product volumes and costs with a large direct labor cost as a percentage of the total product cost with multiple, diverse products where management needs to support an increase in sales price
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.
Multiple costing is a technique of using two or more costing methods for ascertainment of cost by: a.the same industry for same product b.the same firm for same product c.the several firm for same product d.the several industries for same product Achievement of real and permanent reduction in the unit cost of product is called as: a.Cost control b.Cost reduction c.Cost analysis d.Cost estimation
Are allocated joint processing costs relevant when making a decision to sell a joint product at the split-off point or process it further? Why?
Which of the following components of production are allocable as joint cost when a single manufacturing process produces several salable products? Direct materials, direct labor, and overhead Direct materials and direct labor only Direct labor and overhead only Overhead and direct materials only
Mephis Manufacturing has a manufacturing process that results in four separate products that together incur some portion of joint costs. If the appropriate split-off point is determined to be at the third stage in the production process, how will the costs incurred after the third stage be accounted for?
Using a physical measurement method, what amount of joint processing cost is allocated to product B? Using sales value at split-off, what amount of joint processing cost is allocated to Product B?
For joint cost allocation: only the net realizable method can be used to allocate joint costs to by-products. only the relative sales value method can be used to allocate joint costs to scrap. separable costs do not include disposal costs. no joint costs are allocated to by-products or scrap. the most accurate method is the one using physical measures of output.
“ Managers must decide whether a product should be sold at splitoff or processed furthur.The sales value at splitoff method of joint-cost allocation is the best method for generating the information managers need for this decision.”Do you agree? Explain.
When management believes that there is a direct link between the joint costs incurred and the value of products before further processing takes place, the _____ is the best alternative to allocating joint costs. A.physical measures methodB.NRV methodC.sales value at splitoff methodD.constant grossmargin percentage method
Give two examples of industries in which joint costs are found.For each example , what are the individual products are at the splitoff point?
Which of the following methods allocates joint costs based on the potential market value at the point where the products will be separated to be processed further? a.net realizable value method b.weighted average method c.market value at split-off method d.physical units method