Question : Objective 16.1 1) What type of cost the result of an : 1211861

 

 

Objective 16.1

 

1) What type of cost is the result of an event that results in more than one product or service simultaneously?

A) byproduct cost

B) joint cost

C) main cost

D) separable cost

 

2) Which of the following statements best define splitoff point in joint costing?

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.

 

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

A) Distribution costs incurred beyond the splitoff point assignable to each of the specific products identified at the splitoff 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 splitoff 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.

4) The focus of joint costing is on allocating costs to individual products ________.

A) before the splitoff point

B) after the splitoff point

C) at the splitoff point

D) at the end of production

 

5) Which of the following statements is true of joint costing?

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

B) Distribution costs incurred beyond the splitoff point that are assignable to each of the specific products identified at the splitoff 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.

 

6) 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 ________.

A) joint products and byproducts

B) joint products and scrap

C) main products and byproducts

D) main products and joint products

 

7) Which of the following statements best define joint products?

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.

8) The products of a joint production process that have low total sales values compared with the total sales value of the main product are called ________.

A) primary products

B) joint products

C) byproducts

D) waste products

 

9) ________ is the differentiating factor while classifying a product as a main product or byproduct.

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 splitoff point

 

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

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

D) byproduct loses its market due to a new invention

 

 

 

 

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