Question :
11) What type of cost the result of an event : 1186055
11) What type of cost is the result of an event that results in multiple products simultaneously?
A) byproduct cost
B) joint cost
C) main cost
D) separable cost
E) split off cost
12) Costs which are assignable beyond the split off point at which individual products emerge are called
A) byproduct cost.
B) joint cost.
C) main cost.
D) separable cost.
E) split off costs.
13) 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.
E) byproducts and scrap.
14) Byproducts and scrap are differentiated by
A) number of units per processing period.
B) weight or volume of outputs per period.
C) management preference only.
D) the amount of sales value per unit.
E) the amount of costs assigned to each unit.
15) Which of the following is FALSE concerning manufacturing of joint products and joint costing?
A) The number of outputs produced may exceed the number of products.
B) An output from the process may be recycled without any value being added by its production.
C) Some outputs from a joint process have no value and are not recognized in the accounting system.
D) The physical quantity of outputs not recognized in the accounting system, can exceed the quantities of outputs that recognized in the accounting system.
E) Joint processes always yield either scrap or byproducts.
16) All of the following changes may indicate a change in product classification of a manufacturing process which has a split off point EXCEPT
A) scrap items increase in sales value.
B) a main product becomes a joint product.
C) a main product becomes technologically obsolete.
D) a byproduct loses its market due to a new invention.
E) a byproduct increases in market value.
17) Products with a zero sales value are known as
A) scrap.
B) main products.
C) joint products.
D) byproducts.
E) separable products.
18) Which of the following statements is true regarding main products, byproducts, and scrap?
A) Product classifications do not change over the short-run.
B) Product classifications do not change over the long-run.
C) Product classifications may change over time.
D) The cause-and-effect criterion determines the classification.
E) The distinctions between main products, byproducts, and scrap are well-established in practice.
19) Which of the following is NOT a reason to allocate joint cost?
A) rate regulation requirements, if applicable
B) cost of goods sold computations
C) insurance settlement cost information requirements
D) customer profitability analysis
E) cause-and-effect analysis
20) Assigning joint costs when only a portion of a business’s products are sold to a single customer is an example of which of the following?
A) inventory costing for external financial statements
B) customer profitability analysis
C) rate regulation requirements
D) price regulation
E) cost reimbursement
