All costs that are incurred between the split-off point and the point of sale are known as

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Chapter 11 - Allocation of Joint Costs and Accounting For By-Products

Original Title:

Chapter 11- joint and by product

COST ACCOUNTING AND CONTROL

QUIZ 2

AY 2020-2021

MULTIPLE CHOICE:

1.The characteristic which is most often used to distinguish a product as either a joint product

or a by-product is the

A.Amount of labor used in processing the product.

B.Amount of separable product costs that are incurred in processing.

C.Amount (i.e., weight, inches, etc.) of the product produced in the manufacturing process.

D. Relative sales value of the products produced in the process.

2.Which of the following components of production are allocable as joint costs when a single

manufacturing process produces several salable products?

A.Materials, labor and overhead

B.Materials and labor only

C.Labor and overhead only

D.Overhead and materials only

3.Joint costs are used for:

A.Setting the selling price of a product.

B.Determining whether to continue producing an item.

C.Controlling costs

D.Determining inventory costs for accounting purposes

4.Which of the following statements about joint-cost allocation is false?

A.Joint-cost allocation is useful in deciding whether to further process a product after split-

off.

B.Joint-cost allocation is useful in making a profit determination about individual

C.Joint-cost allocation is helpful in inventory valuation.

D.Joint-cost allocation can be based on the number of units produced.

5.The joint-cost allocation method that recognizes the revenues at split-off but does not

consider any further processing costs is the:

A. Relative-sales-value method

B.Net-realizable-value method

C.Physical-units method

D.Reciprocal-accounting method

6.For purposes of allocating joint costs to joint products using the relative sales value of split-

off method, the costs beyond split-off.

A.Are allocated in the same manner as the joint costs.

B.Are deducted from the relative sales value at split-off.

C.Are deducted from the sales value at the point of sale.

D.Do not affect the allocation of the joint costs.

7.The method of pricing by products/scrap where no value is assigned to these items until they

are sold is known as the

A.Net realizable value at split-off point method.

B.Sales value at split-off method.

C.Realized value approach.

D.Approximated net realizable value at split-off method.

8. All costs that are incurred between the split-off point and the point of sale are known as

a.Sunk costs

b.Split-off point

c.Transfer to finished goods inventory

Which costs are incurred after split

What is meant by split

What is sales value at split off?

Is costs incurred beyond the split