Cost Acct Chapter 16 100% SOLUTIONS

Cost Acct Chapter 16 100% SOLUTIONS 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 - ANSWER B All costs incurred beyond the splitoff point that are assignable to one or more individual products are called: A) byproduct costs B) joint costs C) main costs D) separable costs - ANSWER D In joint costing: A) costs are assigned to individual products as assembly of the product occurs B) costs are assigned to individual products as disassembly of the product occurs C) a single production process yields two or more products D) Both B and C are correct. - ANSWER D The ________ point is the juncture in a joint production process when two or more products become separately identifiable. A) splitoff B) joint product C) process D) end - ANSWER A 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 - ANSWER C 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 - ANSWER C When a joint production process yields two or more products with high total sales values, these products are called: A) main products B) joint products C) byproducts D) scrap - ANSWER B Byproducts and main products are differentiated by the: A) number of units per processing period B) weight or volume of outputs per period C) amount of total sales value D) None of these answers is correct. - ANSWER C All of the following changes may indicate a change in product classification of a manufacturing process which has a splitoff point EXCEPT a: A) byproduct increases in sales value due to a new application B) main product becomes a joint product C) main product becomes technologically obsolete D) byproduct loses its market due to a new invention - ANSWER B Which of the following methods of allocating costs use market-based data? A) Sales value at splitoff method B) Estimated net realizable value method C) The constant gross-margin percentage method D) All of these answers are correct. - ANSWER D Products with a relatively low sales value are known as: A) scrap B) main products C) joint products D) byproducts - ANSWER D Which of the following statements is true regarding main products and byproducts? 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. - ANSWER C Outputs with zero sales value are accounted for by: A) listing these various outputs in a footnote to the financial statements B) including the items as a relatively small portion of the value assigned to the products produced during the accounting period C) making journal entries to reflect an estimate of possible values D) None of these answers is correct. - ANSWER D Outputs with a negative sales value are: 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 - ANSWER B Joint costs are incurred beyond the splitoff point and are assignable to individual products. TRUE/FALSE - ANSWER F Separable costs are incurred beyond the splitoff point that are assignable to each of the specific products identified at the splitoff point. TRUE/FALSE - ANSWER T Separable costs include manufacturing costs only. TRUE/FALSE - ANSWER F The focus of joint costing is assigning costs to individual products as assembly occurs