HORNGRENS COST ACCOUNTING W/ACCESS
16th Edition
ISBN: 9781323687604
Author: Datar
Publisher: PEARSON
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Question
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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Students have asked these similar questions
The focus of a sell or process further decision is
Select one:
a. incremental cost.
b. incremental revenue.
c. neither incremental revenue nor incremental cost.
d. both incremental revenue and incremental costs.
When making decisions, managers should consider
a. revenues that differ between alternatives.
b. costs that do not differ between alternatives.
c. only variable costs.
d. sunk costs in their decisions.
Profitability changes may be simply calculated by using what kind of tool: sales price/volume/variable costs/fixed costs.
Chapter 16 Solutions
HORNGRENS COST ACCOUNTING W/ACCESS
Ch. 16 - Give two examples of industries in which joint...Ch. 16 - What is a joint cost? What is a separable cost?Ch. 16 - Distinguish between a joint product and a...Ch. 16 - Why might the number of products in a joint-cost...Ch. 16 - Provide three reasons for allocating joint costs...Ch. 16 - Why does the sales value at splitoff method use...Ch. 16 - Prob. 16.7QCh. 16 - Distinguish between the sales value at splitoff...Ch. 16 - Give two limitations of the physical-measure...Ch. 16 - How might a company simplify its use of the NRV...
Ch. 16 - Why is the constant gross-margin percentage NRV...Ch. 16 - Managers must decide whether a product should be...Ch. 16 - Prob. 16.13QCh. 16 - Describe two major methods to account for...Ch. 16 - Why might managers seeking a monthly bonus based...Ch. 16 - Prob. 16.16MCQCh. 16 - Joint costs of 8,000 are incurred to process X and...Ch. 16 - Houston Corporation has two products, Astros and...Ch. 16 - Dallas Company produces joint products, TomL and...Ch. 16 - Earls Hurricane Lamp Oil Company produces both A-1...Ch. 16 - Joint-cost allocation, insurance settlement....Ch. 16 - Joint products and byproducts (continuation of...Ch. 16 - Net realizable value method. Sweeney Company is...Ch. 16 - Alternative joint-cost-allocation methods,...Ch. 16 - Alternative methods of joint-cost allocation,...Ch. 16 - Prob. 16.26ECh. 16 - Joint-cost allocation, sales value, physical...Ch. 16 - Joint-cost allocation: Sell immediately or process...Ch. 16 - Accounting for a main product and a byproduct....Ch. 16 - Joint costs and decision making. Jack Bibby is a...Ch. 16 - Joint costs and byproducts. (W. Crum adapted)...Ch. 16 - Methods of joint-cost allocation, ending...Ch. 16 - Alternative methods of joint-cost allocation,...Ch. 16 - Comparison of alternative joint-cost-allocation...Ch. 16 - Joint-cost allocation, process further or sell....Ch. 16 - Joint-cost allocation. SW Flour Company buys 1...Ch. 16 - Further processing decision (continuation of...Ch. 16 - Joint-cost allocation with a byproduct. The...Ch. 16 - Byproduct-costing journal entries (continuation of...Ch. 16 - Joint-cost allocation, process further or sell....Ch. 16 - Prob. 16.41PCh. 16 - Prob. 16.42PCh. 16 - Methods of joint-cost allocation, comprehensive....
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Similar questions
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- Which of the following is not an application of cost-volume-profit analysis? Setting prices for products and services. Performing strategic “what-if” analyses. Deciding whether to cut a product line. Determining the short-term cost or profit implications of many decisions. Deciding whether to make or buy a given product or service.arrow_forwardCost-volume-profit analysis is useful for Question 8 options: 1) helping managers to answer "what-if" questions. 2) implementing a differentiation strategy. 3) eliminating uncertainty about external factors, such as interest rates. 4) for long-range planning. 5) assigning costs to products.arrow_forwardWhich tool can be used to easily calculate the change in profit resulting from a change in sales price, sales volume, variable costs, or fixed costs?arrow_forward
- Which of the following statements is true? I. Incremental analysis is an analytical approach that focuses only on those revenues and costs that will not change as a result of a decision. II. When expressed on a per unit basis, fixed costs can mislead decision makers into thinking of them as variable costs. II. To estimate what the profit will be at various levels of sales volume, multiply the number of units to be sold above or below the break-even point by the unit contribution margin. Statements I and III are true. Statements II and III are true. All of the statements are true. None of the statements are true.arrow_forwardQ: What is variable costing? How does it differ from absorpotion costing? Which can better be used to manipulate the income statement and how? Why would management do this?arrow_forwardWhich of the following is not a feature of full costplus sales pricing related to a range of a company’sproducts? it may not maximise profitit distinguishes between variable, fixed and opportunity costsit requires the apportionment of shared costsit ignores the relationship between demand and pricesarrow_forward
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