Cost Accounting, Student Value Edition (15th Edition)
Cost Accounting, Student Value Edition (15th Edition)
15th Edition
ISBN: 9780133428858
Author: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
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Chapter 16, Problem 16.13Q
To determine

Separable costs:

Separable costs are the cost assigned to each product after the split-off point. These costs are directly assigned to products and are distinguishable to individual product.

Split-off Point:

Split-off point is the point in production process where joint products are capable of being distinguished individually.

Incremental costs:

Incremental costs are the additional rise in the cost due to additional production activity.

To identify: Costs and revenues to be considered by the managers for making decision of selling at split off or further processing.

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