What should be considered when deciding whether a joint product should be sold at the split-off point or processed further?
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What should be considered when deciding whether a joint product should be sold at the split-off point or processed further?
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- 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?A decision that involves potential further processing of joint products is which kind of decision? relevant make-or-buy sell-or-process-further special-order keep-or-dropBriefly 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?
- “ 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.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?In which scenario would an adjusted sales value be used to assign costs? a. If abnormal losses occur during production of joint products b. If a joint product is to be processed further after the point of separation c. If one of the joint products has negligible market value d. If joint products are separately identifiable before split-off 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 methodUsing 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?What considerations should managers make when deciding whether to sell a product as-is or after additional processing?
- Sell at Split-Off or Process Further Decision, Alternatives, Relevant Costs[CPA Adapted] For purposes of allocating joint costs to joint products, the sales value at splitoff method could be used in which of the following situations? No costs Cost beyond beyond splitoff splitoff a. Yes No b. Yes No c. No Yes d. No YesThe 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