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Post 1 - sales value Joint products have the highest value...

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Question 1, page 499 of text How does management explain how to classify each type of output from a joint process? Is this decided before or after production? Discussion Checklist: 1. Identify if output is classified based on relative sales value 2. Identify that joint products have the highest relative sales value 3. Identify that scrap has the lowest relative sales value 4. Describe when the classification for products in a joint process is reported Hi Professor and class, Joint processing output is based on the sales value of each type of output. Joint products are those resulting from a joint process that has a relatively greater sales value for each type of output. By- products are output of insufficient sales value to justify undertaking the joint process. Scrap output has little sales value. Thus, the distinction among the three product groups is their relative
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Unformatted text preview: sales value. Joint products have the highest value followed by by-products. Usually, the classification of output is determined before production. Management decides whether a joint process output is a joint product, a by-product, or scrap based on judgment. Output from a joint process is subjectively classified according to management's assessment of the relative sales value of each type. The classification of outputs of a joint process is usually decided before the process is undertaken. However, in unusual cases, the actual outputs of the joint process may not result as planned. In these types of situations, management may classify them differently than originally intended. Jack Cost Accounting. Foundation and Evolutions. Michael R. Kinney and Cecily A. Raiborn...
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