HORN_Ch16_SM.docx - CHAPTER 16 COST ALLOCATION JOINT...

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CHAPTER 16 COST ALLOCATION: JOINT PRODUCTS AND BYPRODUCTS 16-1 Give two examples of industries in which joint costs are found. For each example, what are the individual products at the splitoff point?
16-2 What is a joint cost? What is a separable cost?
16-3 Distinguish between a joint product and a byproduct.
16-4 Why might the number of products in a joint-cost situation differ from the number of outputs? Give an example.
16-5 Provide three reasons for allocating joint costs to individual products or services.
16-1
5. Rate regulation when one or more of the jointly-produced products or services are subject to price regulation. 6. Litigation in which costs of joint products are key inputs. 16-6 Why does the sales value at splitoff method use the sales value of the total production in the accounting period and not just the revenues from the products sold?

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