JOINT & BY PRODUCT - COSTING

Joint costs are incurred beyond the split-off point and are assignable to individual

products.

• True

• False

Answer explanation

Joint costs are incurred prior to the split-off.

Separable costs are assignable after the splitoff point.

• True

• False

The focus of joint costing is assigning costs to individual products as assembly occurs.

• True

• False

Answer explanation

The focus is accumulating costs incurred on the joint products.

A byproduct has a minimal sales value.

• True

• False

A major deficiency of the sales value at split-off method is that this method does not

allow management to obtain individual product costs and gross margin information.

• True

• False

Answer explanation

The sales value at split-off method enables the accountant to obtain individual product

costs and gross margins.

What type of cost is the result of an event that results in more than one product or

service simultaneously?

• By product cost

• Joint cost

• Main cost

• Separable cost

All costs incurred beyond the split-off point that are assignable to one or more individual

products are called

• By product cost

• Joint cost

• Main cost

• Separable cost

Byproducts and main products are differentiated by

• number of units per processing period.

• weight or volume of outputs per period

• the amount of sales value per unit

• none of the above

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

• joint products and byproducts

• joint products and scrap

• main products and byproducts

• main products and joint products

Products with a relatively low sales value are known as

• scrap

• main products

• joint products

• by products