Cost Accounting Quiz 4 Review - Problems.docx - Cost...

This preview shows page 1 - 2 out of 26 pages.

Cost Accounting Quiz 4 Chapter 16 Joint cost allocation and when to use them: - Physical output method o Allocates joint costs to joint products produced during the accounting period on the basis of a comparable physical measure, such as the relative weight, quantity, or volume at the splitoff point o Include only the joint product outputs in the weighting computations - Split-off method o Allocates joint costs to joint products produced during the accounting period on the basis of the relative total sales value at the splitoff point o Selling prices must exist for all products at the splitoff point - Net realizable method o Allocates joint costs to joint products produced during the accounting period on the basis of their relative NRV – final sales value minus separable costs o Used instead of the splitoff method when selling prices for one or more products at splitoff point don’t exist - Constant gross margin NRV method o Allocates joint costs to joint products produced during the accounting period in such a way that each individual product achieves an identical gross margin percentage o Only method where products can receive negative allocations Joint costs - Costs of a production process that yields multiple products simultaneously Separable costs -
Image of page 1

Subscribe to view the full document.

Image of page 2

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask 0 bonus questions You can ask 0 questions (0 expire soon) You can ask 0 questions (will expire )
Answers in as fast as 15 minutes