NEW MyLab Accounting with Pearson eText -- Access Card -- for Financial Accounting
10th Edition
ISBN: 9780133437287
Author: Walter T. Harrison Jr., Charles T. Horngren, C. William Thomas
Publisher: PEARSON
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Textbook Question
Chapter 16, Problem 16.11Q
Why is the constant gross-margin percentage NRV method sometimes called a “joint-cost-allocation and a profit-allocation” method?
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Why is the constant gross-margin percentage NRV method sometimes called a “joint-cost allocation and a profit-allocation” method?
Which method results in a more realistic amount for income because it matches the most current costs against revenue?
a.FIFO
b.Weighted average cost
c.Specific identification
d.LIFO
Contribution margin ratio is the proportion of contribution in relation to the
Net Income
Variable costs
Sales
Fixed costs
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Chapter 16 Solutions
NEW MyLab Accounting with Pearson eText -- Access Card -- for Financial Accounting
Ch. 16 - Give two examples of industries in which joint...Ch. 16 - What is a joint cost? What is a separable cost?Ch. 16 - Distinguish between a joint product and a...Ch. 16 - Why might the number of products in a joint-cost...Ch. 16 - Provide three reasons for allocating joint costs...Ch. 16 - Why does the sales value at splitoff method use...Ch. 16 - Prob. 16.7QCh. 16 - Distinguish between the sales value at splitoff...Ch. 16 - Give two limitations of the physical-measure...Ch. 16 - How might a company simplify its use of the NRV...
Ch. 16 - Why is the constant gross-margin percentage NRV...Ch. 16 - Managers must decide whether a product should be...Ch. 16 - Prob. 16.13QCh. 16 - Describe two major methods to account for...Ch. 16 - Why might managers seeking a monthly bonus based...Ch. 16 - Prob. 16.16ECh. 16 - Prob. 16.17ECh. 16 - Prob. 16.18ECh. 16 - Prob. 16.19ECh. 16 - Prob. 16.20ECh. 16 - Prob. 16.21ECh. 16 - Prob. 16.22ECh. 16 - Prob. 16.23ECh. 16 - Prob. 16.24ECh. 16 - Joint costs and decision making. Jack Bibby is a...Ch. 16 - Joint costs and byproducts. (W. Crum adapted)...Ch. 16 - Prob. 16.27PCh. 16 - Prob. 16.28PCh. 16 - Prob. 16.29PCh. 16 - Prob. 16.30PCh. 16 - Prob. 16.31PCh. 16 - Prob. 16.32PCh. 16 - Prob. 16.33PCh. 16 - Prob. 16.34PCh. 16 - Prob. 16.35PCh. 16 - Prob. 16.36PCh. 16 - Methods of joint-cost allocation, comprehensive....
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- Explain how a contribution margin income statement can be used to determine profitability.arrow_forwardWhat is the difference between the unit costs are determined under the weighted average cost method and the first-in, first-out (FIFO) cost method?arrow_forwardIn assigning costs to goods transferred out, how do the weighted average and FIFO methods differ?arrow_forward
- 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 costarrow_forwardUnder the weighted average method, how are prior-period costs and output treated? How are they treated under the FIFO method?arrow_forwardIn the cost equation Y=a+bx, Y represents which of the following? A. fixed costs B. variable costs C. total costs D. units of productionarrow_forward
- The variable cost ratio represents The proportion of variable costs in relation to net income The proportion of variable costs in relation to contribution margin The proportion of variable costs in relation to sales The complementary proportion of fixed costs ratio in relation to sales Group of answer choices 1 2 3 4arrow_forwardQuestions: a. What is the net income under variable costing method? b. What is the net income under absorption costing method?arrow_forwardWhich of the following ratios indicates the percentage of each sales dollar that is available to cover fixed costs and to provide a profit? a. costs and expenses ratio b. contribution margin ratio c. margin of safety ratio d. profit ratioarrow_forward
- A. What is the net income under variable costing method?B. What is the net income under absorption costing method?arrow_forwardThe amount of revenue required to earn a target profit is equal to Total fixed cost divided by contribution margin Total fixed cost divided by the contribution margin ratio Targeted profit divided by the contribution margin ratio Total fixed cost- plus targeted profit divided by contribution margin ratio Targeted profit divided by the variable cost ratioarrow_forwardWhat is the net income under variable costing method? What is the net income under absorption costing method?arrow_forward
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