None Accounting: What governs the allocation ofjoint product costs at split-off point?a) Management decisionb) Relative sales value methodc) Equal allocation basisd) Production volume only

The relative sales value method is the most commonly used and preferred method under accounting…

Answered: Accounting: What governs the allocation…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter12: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 4SEQ: For which cost concept used in applying (he cost-plus, approach to product pricing are fixed...

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Similar questions

In assigning costs to goods transferred out, how do the weighted average and FIFO methods differ?
What is meant by a products contribution margin ratio and how is this ratio useful in planning business operations?
Cost accounting
Cost-volume-profit analysis (CVP Analysis) requires management to classify all costs as either product or period with respect to production or sales volume within the relevant range of operations. True False
The decision of whether to process products beyond the splitoff process should be based on which of the following? Select one: a. Production cost analysis b. Revenue analysis c. Incremental operating income attainable beyond the splitoff point d. Relevant cost analysis e. Gross margin analysis
When using the product cost method of applying the cost-plus approach to product pricing, which of the following is included in the markup? Oa. total fixed manufacturing costs, total fixed selling and administrative expenses, and desired profit b. desired profit Oc. total costs plus desired profit Od. total selling and administrative expenses plus desired profit
Calculation of profit change from changes in sales price, sales volume, variable costs, or fixed expenses may be done using which tool?
Explain clearly
В. Explain the following: Product costs and Period costs and one example of each. Distinguish clearly between Financial Accounting and Management Accounting under 3 (THREE) different factors, which are: i. Stakeholders, ii. Time frame and iii. Regulations. С. Before calculating costs we need to understand how different costs behave. In cost accounting we typically classify costs by three types of behaviour: Fixed costs - costs which don't change as the activity level changes Variable costs - costs which change in direct proportion to changes in the activity level Semi-variable costs- costs which have both fixed and variable elements. Explain the purpose classifying costs into the behavior patterns. D.
1 To decide on an appropriate selling price for a special-order product” is an example of which cost allocation. Select one: a.To motivate managers and other employees b. To provide information for economic decisions c. To justify costs or compute reimbursement amounts d. To measure income and assets for reports to external parties
A traditional income statement classifies costs by function; costs are classified as either product costs or period costs
Ch Which of the following statements is true? Multiple Choice Product costs and variable costs are synonyms. Product costs are excluded from the calculation of gross margin. Product costs are included in inventory as reported on the balance sheet. Product costs include sales commissions and advertising.

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Accounting: What governs the allocation of joint product costs at split-off point? a) Management decision b) Relative sales value method c) Equal allocation basis d) Production volume only