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BADM 3150 Advanced Managerial Accounting o Individual Products University of Guelph

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University of Guelph

BADM 3150 Advanced Managerial Accounting o Individual Products University of Guelph

Cost Accounting, Cdn. Ed., 7e (Horngren)
Chapter 15 Cost Allocation: Joint Products and Byproducts
15.1 Distinguish among different types of saleable products, scrap and toxic waste.
1) Joint costs are incurred beyond the splitoff point and are assignable to individual products.
Explanation: Separable costs are the costs incurred beyond the splitoff point.
Diff: 1 Type: TF
Skill: Remember
Objective: LO 15-1
2) A byproduct has a minimal sales value.
Explanation: Scrap has minimal sales value.
Diff: 2 Type: TF
Skill: Remember
Objective: LO 15-1
3) Scrap frequently has a zero sales value.
Diff: 1 Type: TF
Skill: Remember
Objective: LO 15-1
4) There are no logical reasons for allocating joint costs.
Explanation: Reasons include calculation of inventoriable costs, reimbursement under contracts, etc.
Diff: 1 Type: TF
Skill: Remember
Objective: LO 15-1
5) Separable costs are assignable after the splitoff point.
Diff: 1 Type: TF
Skill: Remember
Objective: LO 15-1
6) Separable costs include manufacturing costs only.
Explanation: Separable costs include manufacturing, marketing, distribution, and other costs.
Diff: 2 Type: TF
Skill: Remember
Objective: LO 15-1
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7) The costs of production that yield multiple products simultaneously are known as joint costs.
Diff: 1 Type: TF
Skill: Remember
Objective: LO 15-1
8) The juncture in a joint production process when two products become separable is the byproduct
point.
Explanation: The juncture in a joint production process when two products become separable is the
splitoff point.
Diff: 1 Type: TF
Skill: Remember
Objective: LO 15-1
9) 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.
Explanation: They are called byproducts.
Diff: 1 Type: TF
Skill: Remember
Objective: LO 15-1
10) If the value of a byproduct rises significantly, it could also be viewed as a joint product.
Diff: 2 Type: TF
Skill: Understand
Objective: LO 15-1
11) All products yielded from joint product processing have some positive value to the firm.
Explanation: Not all products yielded from joint product processing have some positive value to the
firm.
Diff: 2 Type: TF
Skill: Remember
Objective: LO 15-1
12) What type of cost is the result of an event that results in multiple products simultaneously?
A) byproduct cost
B) joint cost
C) main cost
D) separable cost
E) splitoff cost
Diff: 1 Type: MC
Skill: Remember
Objective: LO 15-1
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© 2016 Pearson Canada Inc.
13) Costs which are assignable beyond the splitoff point at which individual products emerge are called
A) byproduct cost.
B) joint cost.
C) main cost.
D) separable cost.
E) splitoff costs.
Diff: 1 Type: MC
Skill: Remember
Objective: LO 15-1
14) When a single manufacturing process yields two products, one of which has a relatively high sales
value compared to the other, the two products are respectively known as
A) joint products and byproducts.
B) joint products and scrap.
C) main products and byproducts.
D) main products and joint products.
E) byproducts and scrap.
Diff: 1 Type: MC
Skill: Remember
Objective: LO 15-1
15) Byproducts and scrap are differentiated by
A) number of units per processing period.
B) weight or volume of outputs per period.
C) management preference only.
D) the amount of sales value per unit.
E) the amount of costs assigned to each unit.
Diff: 2 Type: MC
Skill: Remember
Objective: LO 15-1
16) Which of the following is FALSE concerning manufacturing of joint products and joint costing?
A) The number of outputs produced may exceed the number of products.
B) An output from the process may be recycled without any value being added by its production.
C) Some outputs from a joint process have no value and are not recognized in the accounting system.
D) The physical quantity of outputs not recognized in the accounting system, can exceed the quantities of
outputs that recognized in the accounting system.
E) Joint processes always yield either scrap or byproducts.
Diff: 2 Type: MC
Skill: Understand
Objective: LO 15-1

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BADM 3150 Advanced Managerial Accounting o Individual Products University of Guelph

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