1. If a company obtains two salable products from the refining of one ore, the refining process should be accounted for as a(n) Select one: a. joint process. b. reduction process. c. extractive process. d. mixed cost process. 2. If two or more products share a common process before they are separated, the joint costs should be assigned in a manner that Select one: a. assigns a proportionate amount of the total cost to each product on a quantitative basis. b. minimizes variations in unit production costs. c. maximizes total earnings. d. does not introduce an element of estimation into the process of accumulating costs for each product. 3. Scrap is defined as a Select one: a. finished unit of product that has no sales value. b. residual of the production process that can be reworked for sale as an irregular unit of product. c. residual of the production process that has no sales value. d. residual of the production process that has limited sales value.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
1. If a company obtains two salable products from the refining of one ore, the refining process should be accounted for as a(n)
Select one:
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