Cost Allocation: Joint Products And Byproducts

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Question 1
Free
Multiple Choice

What is the name of a cost of production process that yields multiple products simultaneously?

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A

byproduct

B

joint

C

main

D

separable

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Question 2
Free
Multiple Choice

Which of the following statements best define split off point in joint costing?

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A

It is the point at which managers decide to discontinue one or more of the products.

B

It is the point at which the managers decide to outsource some of its production processes.

C

It is the juncture in a joint production process when two or more products become separately identifiable.

D

It is the juncture at which decisions determining joint costs of various products to be produced are taken.

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Question 3
Free
Multiple Choice

Which of the following statements is true of joint production process and its components?

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A

Distribution costs incurred beyond the split-off point assignable to each of the specific products identified at the split-off point are considered as joint costs.

B

Decisions relating to the sale or further processing of each identifiable product can be made independently of decisions about the other products beyond the split-off point.

C

When a joint production process yields two or more products with low total sales values relative to the total sales values of other products, those products are called joint products.

D

The primary purpose of joint costing is to allocate the separable costs to the individual products that are eventually sold.

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Question 4
Free
Multiple Choice

The challenge of a production facility that is producing several products from is how to allocate the joint costs that are incurred ________ .

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A

before the split-off point

B

after the split-off point

C

at the split-off point

D

at the end of production

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Question 5
Free
Multiple Choice

Which of the following statements is true of joint costing?

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A

The costs of a production process that yields multiple products simultaneously are called joint costs.

B

Distribution costs incurred beyond the split-off point that are assignable to each of the specific products identified at the split-off point are considered as joint costs.

C

The primary purpose of joint costing is to allocate the separable costs to the individual products that are eventually sold.

D

Joint costing is less useful for companies which manufacture multiple products simultaneously from the same production process.

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Question 6
Multiple Choice

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 ________ .

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A
joint products and byproducts
B
joint products and scrap
C
main products and byproducts
D
main products and joint products
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Question 7
Multiple Choice

Which of the following statements best define joint products?

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A
When one product has a high total sales value compared with the total sales value of other products of the process, that product is called a joint product.
B
Product of a joint production process that have the same sales value compared with the total sales value of the by products is called a joint product.
C
When one product has a low total sales value compared with the total sales value of other products of the process, that product is called a joint product.
D
When a joint production process yields two or more products with high total sales values relative to the total sales values of other products, those products are called joint products.
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Question 8
Multiple Choice

A company produces three products from a joint production process:: A, B, and C. As a percentage of total sales value, a represents 50%, B 49.5%, and C .5%. Product C could be considered a ________ .

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A
primary product
B
main product
C
byproduct
D
waste product
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Question 9
Multiple Choice

Which of the following factors would guide you in classifying a product as a main product or byproduct?

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A
Number of units per processing period
B
Weight or volume of outputs per period
C
Percentage of total sales value
D
Joint costs incurred up to the split-off point
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Question 10
Multiple Choice

In joint costing, which of the following changes may lead to a change in product classification?

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A
main product sales price increases due to a new application
B
byproduct sales price decreases due to a new government regulation
C
main product becomes technologically obsolete and it's market value falls significantly
D
byproduct losses value due to a competing products
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Question 11
Multiple Choice

Timber logs are processed into standard lumber used in home construction and wood chips that will be sold to landscapers. How would these products be classified?

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A
primary products
B
main products
C
joint products
D
a primary product and a byproduct
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Question 12
Multiple Choice

Which of the following statements is true of main products and byproducts?

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A
A byproduct will never become a main product.
B
A main product will never become a byproduct.
C
Product classifications may change over time.
D
Product classifications remains constant over time.
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Question 13
Multiple Choice

Outputs with a negative sales value because of disposal costs have which of the following impact on costs?

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A
added to cost of goods sold
B
added to joint production costs and allocated to joint or main products
C
added to joint production costs and allocated to byproducts and scrap
D
subtracted from product revenue
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Question 14
True/False

Joint costs are incurred beyond the split-off point and are assignable to individual products.

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True
False
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Question 15
True/False

Joint costing allocates the joint costs to the individual products that are eventually sold.

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True
False
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Question 16
True/False

Separable costs include manufacturing costs only.

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True
False
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Question 17
True/False

Classification of main products, joint products, and byproducts can always be done with ease.

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True
False
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Question 18
True/False

Joint costs are the costs of a production process that yields multiple products simultaneously.

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True
False
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Question 19
True/False

The juncture in a joint production process when two products become separable is the byproduct point.

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True
False
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Question 20
True/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.

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True
False
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