MCQs on Joint Products & By-products

Joint products are:

• Products of equal importance obtained from the same process

• Products of unequal importance obtained from different processes

• Products of equal importance obtained from different processes

• Products of unequal importance obtained from the same process

By-products are:

• The main products of the process

• Products of lesser value produced incidentally in manufacturing main products

• Always waste products

• Unrelated to the main product

The point at which joint products become separately identifiable is called:

• By-product point

• Process point

• Split-off point

• Joint-cost point

Which of the following is NOT a method of apportioning joint costs?

• Physical units method

• Sales value at split-off method

• Net realizable value method

• Straight-line depreciation method

In the oil industry, petrol, diesel, and kerosene produced from crude oil are examples of:

• By-products

• Joint products

• Waste products

• Separate processes

If a by-product is sold, the revenue is usually:

• Ignored completely

• Deducted from the cost of the main product

• Added to the profit of the main product without adjustments

• Considered as joint product revenue

In the sugar industry, molasses is an example of:

• Joint product

• By-product

• Scrap

• Waste

Which method allocates joint costs based on the market value of products at the split-off point?

• Market value method

• Physical units method

• Average unit cost method

• Step-down method

Joint costs are:

• Costs incurred before the split-off point

• Costs incurred after the split-off point

• Costs related only to by-products

• Variable costs only

Which of the following is NOT a joint product industry?

• Dairy industry

• Lumber industry

• Textile weaving industry

• Meat processing industry