Question : MULTIPLE CHOICE. Choose the one alternative that best completes the statement : 1196105

 

MULTIPLE CHOICE.

Choose the one alternative that best completes the statement or answers the question. 21)

What type of cost is the result of an event that results in multiple products simultaneously? 21)

______ A)

main cost B)

byproduct cost C)

joint cost D)

separable cost E)

split off cost

22)

Costs which are assignable beyond the split off point at which individual products emerge are called 22)

______ A)

separable cost. B)

split off costs. C)

byproduct cost. D)

main cost. E)

joint cost.

23)

A product is 23)

______ A)

any output after the split off point. B)

any separately identifiable output. C)

an output for which the organization incurred costs. D)

any output that enables an organization to avoid incurring costs. E)

anything produced with a high sales value.

24)

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 24)

______ A)

main products and byproducts. B)

joint products and scrap. C)

joint products and byproducts. D)

byproducts and scrap. E)

main products and joint products.

25)

Byproducts and scrap are differentiated by 25)

______ A)

weight or volume of outputs per period. B)

the amount of sales value per unit. C)

the amount of costs assigned to each unit. D)

number of units per processing period. E)

management preference only.

26)

Which of the following is FALSE concerning manufacturing of joint products and joint costing? 26)

______ A)

The number of outputs produced may exceed the number of products. B)

The physical quantity of outputs not recognized in the accounting system, can exceed the quantities of outputs that recognized in the accounting system. C)

Joint processes always yield either scrap or byproducts. D)

An output from the process may be recycled without any value being added by its production. E)

Some outputs from a joint process have no value and are not recognized in the accounting system.

27)

All of the following changes may indicate a change in product classification of a manufacturing process which has a split off point EXCEPT 27)

______ A)

a main product becomes technologically obsolete. B)

a byproduct loses its market due to a new invention. C)

a main product becomes a joint product. D)

scrap items increase in sales value. E)

a byproduct increases in market value.

28)

Products with a zero sales value are known as 28)

______ A)

joint products. B)

main products. C)

separable products. D)

byproducts. E)

scrap.

29)

Which of the following statements is TRUE regarding main products, byproducts, and scrap? 29)

______ A)

Product classifications do not change over the short-run. B)

The distinctions between main products, byproducts, and scrap are well-established in practice. C)

Product classifications do not change over the long-run. D)

Product classifications may change over time. E)

The cause-and-effect criterion determines the classification.

30)

Which of the following is NOT a reason to allocate joint cost? 30)

______ A)

cost of goods sold computations B)

rate regulation requirements, if applicable C)

cause-and-effect analysis. D)

customer profitability analysis E)

insurance settlement cost information requirements

21)

C 22)

A 23)

D 24)

A 25)

C 26)

C 27)

C 28)

E 29)

D 30)

C