Cost Accounting Answers

True/False

`1. Joint costs are incurred beyond the splitoff point and are assignable to individual products.`

`2. Separable costs are assignable before the splitoff point.`

3. The cause-and-effect criterion is not present when joint costing is used.

`4. Products that cannot be physically identified separately until the splitoff point are known as joint products.`

5. A byproduct has a minimal sales value.

14. It is relevant to management's decision if the joint cost does not differ between two alternatives.

15. Byproducts are recognized in the general ledger either at the time of production or at the time of sale.

` 16. Byproduct revenues appear in the income statement as a cost increase to the main product and as a separate item of expense.`

17. Byproduct accounting assigns joint common costs to byproducts in the same manner as main products.

` Multiple Choice `

18. 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`

` 19. Costs which are assignable beyond the splitoff point at which individual products emerge are called`

` a. byproduct costs. b. joint costs. c. main costs. d. separable costs.`

` 20. 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.`

28. All of the following methods may be used to allocate joint costs EXCEPT

` a. the constant gross-margin percentage method.`

` b. the estimated net-realizable value method.`

` c. the present-value allocation method.`

` d. the sales value at splitoff method.`

29. Which of the following is NOT a strategy for costing inventory when joint-cost circumstances...