Ch16 - Cost Accounting 13e(Horngren et al Chapter 16 Cost Allocation Joint Products and Byproducts 1 Joint costs are incurred beyond the splitof

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Cost Accounting, 13e (Horngren et al.) Chapter 16 Cost Allocation: Joint Products and Byproducts 1) Joint costs are incurred beyond the splitof point and are assignable to individual products. Answer: FALSE Explanatio n: Joint costs are incurred prior to the splitof. Dif: 2 Terms : joint costs, splitof point Objectiv e: 1 AACSB: ReFective thinking 2) Separable costs are assignable a±ter the splitof point. Answer: TRUE Dif: 2 Terms : separable costs, splitof point Objectiv e: 1 AACSB: ReFective thinking 3) Separable costs include manu±acturing costs only. Answer: FALSE Explanatio n: 1
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Separable costs include manufacturing, marketing, distribution, and other costs. Dif: 2 Terms : separable costs, splitof point Objectiv e: 1 AACSB: ReFective thinking 4) The focus of joint costing is assigning costs to individual products as assembly occurs. Answer: FALSE Explanatio n: The focus is accumulating costs incurred on the joint products. Dif: 2 Terms : joint costs Objectiv e: 1 AACSB: ReFective thinking 5) The costs of production that yield multiple products simultaneously are known as joint costs. Answer: TRUE Dif: 1 Terms : joint costs Objectiv e: 1 AACSB: ReFective thinking 6) The juncture in a joint production process when two products become separable is the byproduct point. 2
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FALSE Explanatio n: The juncture in a joint production process when two products become separable is the splitof point. Dif: 1 Terms : byproducts, splitof point Objectiv e: 1 AACSB: ReFective thinking 3
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7) At or beyond the splitof point, decisions relating to the sale or Further processing oF each identi±able product can be made independently oF decisions about the other products. Answer: TRUE Dif: 1 Terms : splitof point, main products, joint products Objectiv e: 1 AACSB: ReFective thinking 8) The products oF a joint production process that have low total sales values compared with the total sales value oF the main product are called joint products. Answer: ²ALSE Explanatio n: They are called byproducts. Dif: 1 Terms : byproducts, joint products Objectiv e: 2 AACSB: ReFective thinking 9) A byproduct has a minimal sales value. Answer: TRUE Dif: 2 Terms : byproducts Objectiv e: 2 4
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AACSB: Refective thinking 10) All products yielded from joint product processing have some positive value to the Frm. Answer: ±ALSE Explanatio n: Not all products yielded from joint product processing have some positive value to the Frm. DiF: 1 Terms : byproducts, joint products Objectiv e: 2 AACSB: Refective thinking 11) If the value of a byproduct rises signiFcantly, it could also be viewed as a joint product. Answer: TRUE DiF: 1 Terms : byproducts, joint products Objectiv e: 2 AACSB: Refective thinking 12) Joint costs are not allocated to individual products for the preparation of tax returns. Answer: ±ALSE Explanatio n: Joint costs are allocated for reporting to tax authorities.
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This note was uploaded on 09/18/2010 for the course ACCT 424 taught by Professor All during the Spring '10 term at DeVry Long Beach.

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Ch16 - Cost Accounting 13e(Horngren et al Chapter 16 Cost Allocation Joint Products and Byproducts 1 Joint costs are incurred beyond the splitof

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