When a single manufacturing process yields two products?
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Which of the following statements best define split off point in joint costing? c) It is the juncture in a joint production process when two or more products become separately identifiable. Which of the
following statements best define joint products? d) When a joint production process yields two or more products with high total sales values relative to the total sales value of other products, those products are
called joint products. The products of a joint production process that have low total sales value compared with the total sales value of the main product are called __________. __________ is the differentiating factor while classifying a product as a main product
or byproduct. c) Percentage of total sales value In joint costing, which of the following changes may lead to a
change in product classification? c) main product becomes technologically obsolete Products with a relatively low sales value are known as _________. Which of the following statements is true of main products and byproducts? c) Product classifications may change over time. Outputs with a negative sales value are __________. b) added to joint production costs and allocated to joint or main products True or False: Joint costs are incurred beyond the split off point and are assignable to individual products. FALSE Joint costs are incurred prior to the split off point. True or False: Joint costing allocates the joint costs to the individual products that are eventually sold. True or False: Separable costs include manufacturing costs only. FALSE Separable costs include manufacturing, marketing, distribution, and other costs. True or False: Classification of main products, joint products, and byproducts can always be done with ease. FALSE In practice, distinctions among main products, joint products, and byproducts are not so clearcut. True or False: Joint costs are the costs of a production process that yields multiple products simultaneously. True or False: The juncture in a joint production process when two products become separable is the byproduct point. FALSE The juncture in a joint production process when two products become separable is the split off point. True or False: Before the split off point, decisions relating to the sale or further processing of each identifiable product cannot be made independently of decisions about the other products. True or False: When a joint production process yields two or more products with high total sales values, these products are called joint products. True or False: All products yielded from joint product processing have some positive value to the firm. FALSE Not all products yielded from the joint production process have some positive value to the firm. True or False: If the value of a byproduct drops significantly, it could also be viewed as a joint product. FALSE If the value of a byproduct drops significantly, it will remain as a byproduct only. What is a main product? Give an example. When one product has a high total sales value compared with total sales value of other products of the process. (Ex. timber processed into lumber) What is a joint product? Give an example. When a joint production process yields tow or more products with high total sales value compared with the total sales value of other products. (Ex. crude oil processed into gasoline or kerosene) What is a byproduct? Give an example. Products of a joint production process that have low total sales value compared with the total sales value of the main product or joint products. (Ex. wood chips created when timber is processed into lumber) Joint costs are the costs of a single production process that yield multiple products simultaneously. What are separable costs? Separable costs are all costs incurred beyond the split off point that are assignable to each of the specific products identified at the split off point. What is the split off point? The split off point is the juncture in a joint production process when the products become separately identifiable. An example is the point at which coal become coke, natural gas, and other products. Which of
the following is a possible reason to allocate joint costs to individual products? a) rate regulation requirements A business which enters into a contract to
purchase a product which compensates the manufacturer under a cost reimbursement agreement should take an active part in the determination of how joint costs are allocated because __________. a) the manufacturer may allocate a large portion of its other cots to these products Which of the following statements is true of the methods for allocating joint costs? d) Sales value at split off method uses the sales value of the entire production of the accounting period to allocate costs. An example of allocating joint costs using physical measures is allocating joint costs based on __________. b) volume of the products In joint costing, which of the following is a market-based approach to allocating costs? The sales value at split off method _________. a) allocates joint costs to join products on the basis of the relative total sales value at the split off point. Which of the following statements is true of methods for allocating joint costs? c) The sales value at split off method allocates joint costs to each product in proportion to the sales value of total production. The physical measure method _________. b) allocates joint costs to joint products on the basis of a comparable physical measure at the split off point. The net realizable value method __________. d) allocates joint costs to joint products on the basis of relative NRV Which of the following statements is true in regard to the cause-and-effect relationship between allocated and joint costs and individual products? d) There is no cause-and-effect relationship. The benefits-received criteria for allocating joint costs indicate market-based measures are preferred because __________. c) revenues are usually the best indicators of the benefits received. What type of cost is the
result of an event that results in more than one product or service simultaneously? When a single manufacturing process yields two products one of which has a relatively high sales value compared?Question: When a single manufacturing process yields two products, one of which has a relatively high sales value compared to the other, the two products are respectively known as: O joint products and byproducts O joint products and scrap main products and byproducts main products and joint products.
When a joint production process yields two or more products?d) When a joint production process yields two or more products with high total sales values relative to total sales values of other products, those products are called joint products.
What is the name of a cost of production process that yields multiple products simultaneously?Joint costs are the costs of a production process that yields multiple products simultaneously. The juncture in a joint production process when two products become separable is the byproduct point.
What is joint product and byJoint Product. By-Product. Meaning. When the production of two or more products of similar value, are made together with same input and process, is called joint product. The term by-product means a product which is incidentally produced, during the processing operation of another product.
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