Briefly describe the treatment of Joint Costs when making a sell-or-process-further decision. 2. What is the decision rule in deciding whether to sell a product or process it further?

Dear student, as per Bartleby answering guidelines we can not answer more than one question if…

Answered: Briefly describe the treatment of Joint…

Business

Accounting

Briefly describe the treatment of Joint Costs when making a sell-or-process-further decision.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 11Q: What is a general rule to remember with respect to a sell-or-process-further environment, and what...

See similar textbooks

Related questions

Q: Is

Q: Are allocated joint processing costs relevant when making a decision to sell a joint product at the…

A: Definition: Joint production process: A joint production process results in two or more products,…

Q: What are joint costs? How do they affect the sell or process further decision?

Q: “ Managers must decide whether a product should be sold at splitoff or processed furthur.The sales…

A: No, any method that is used to assign costs to individual products that is applied to the problem of…

Q: When making outsourcing decisions, which of the following is true? a. Expected use of the freed…

A: When making decision on make or buy decision or which are otherwise called as Outsourcing decisions,…

Q: When should a company use absorption costing when setting sales prices? When should it use variable…

A: Variable Costing: "Variable costing is a method that allocates only variable manufacturing costs to…

Q: Briefly describe the treatment of Joint Costs when making a sell-or-process-further decision. What…

A: Joint costs are the costs which are incurred jointly in the production process for two or more…

Q: The focus of a sell or process further decision is Select one: a. incremental cost. O b. incremental…

A: Introduction: Incremental cost : Its an extra cost for producing the unit.

Q: “Companies that make no variable-cost/fixed-cost distinctions must use absorption costing, and those…

A: Variable Costing:The variable costing is a method used to allocate the fixed manufacturing overhead…

Q: State the uses of Marginal Costing technique in decision making process. How CVP( cost volume…

A: CVP refers to cost volume profit analysis. It is calculated to find out the break-even

Q: “Sunk costs are considered by a manufacturer in decision making”. Do you agree? Explain.

A: "Sunk costs are considered by a manufacturer in decision making”. I do not agree with this…

Q: In the sell-or-process-further decision,a. joint costs are always relevant.b. total costs of joint…

A: Management accounting: The act of distinguishing, investigating, , measuring, interpreting, and…

Q: What is the basic difference between absorption costing and variable costing? What are the…

A: Product costs are those kinds of costs which is related to the procedure of production directly like…

Q: Cost Bunso making decision to the following, excep accept or reject a special order. price higher or…

A: Relevant Costing is a managerial decision that decides upon how unnecessary costs can be avoided and…

Q: The objective of management, under absorption costing, is that each product recovers its full cost…

A: Absorption costing is the method used by the managers to determine the cost connected with the…

Q: The amount of increase or decrease in cost that is expected from a particular course of action as…

A: Discretionary cost: A discretionary expense is a cost that a business or household can survive…

Q: Which costs assignment method would you use to assign prime costs to a product: a.direct tracing…

A: Prime cost: prime cost is total of direct cost that is direct material, direct labor and direct…

Q: Which of the following statements best describes a by-product? Multiple Choice A product created…

A: A by-product is comparably lesser in terms of the total amount and is derived incidentally from the…

Q: Which of the following would not be a period cost? Group of answer choices Sales commissions.…

A: Period costs include those costs which cannot be directly associated with the manufacturing of the…

Q: Define prime cost and conversion. Why can't prime cost prime cost be added to conversion cost to get…

A: Classification of costs is important to arrive at per head cost. It helps the management to take…

Q: “A component part should be purchased whenever the purchase price is less than its total…

A: Operating Income:Operating income is income which is earned by carrying out the regular business…

Q: What is the decision rule for selling a product as is or processing it further?

A: Definition: Differential analysis: Differential analysis refers to the analysis of differential…

Q: In make-or-buy decisions for a part for a product, relevant costs include ________. A) some…

A: Make-or-buy decisions for a part of a product: The company has many options to choose from like…

Q: Managers must decide whether a product should be sold at splitoff or processed further. The sales…

A: Joint cost is the cost of assembling, that is incurred by an organization on a joint creation…

Q: Required: 1. Determine the net effect of buying the components on the net income. Will you outsource…

A: Answer:

Q: When making outsourcing decisions, which of the following is true? The expected use of the freed…

A: Decision making for make or buy a product are otherwise called as Outsourcing decisions, in order to…

Q: Under absorption costing, how is it possible to increase net operating income without increasing…

A: Format of Income Statement under Absorption Costing

Q: Discuss the different situations for when Traditional Absorption Costing and Relevant costing would…

A: The traditional absorption costing is useful to estimate the cost of production that include direct…

Q: In Make or buy decision ,irrelevant costs are : Select one: a. manufacturing costs that will be…

A: Under make or buy decision, decision needs to taken whether we should manufacture the product or…

Q: TRUE OR FALSE The general principle in determining the number of cost pools is that a separate cost…

A: Solution: The general principle in determining the number of cost pools is that a separate cost pool…

Q: re the difference between traditional product costs and activity-based product

A: Traditional product costs: The traditional method of allocating product costs is to allocate the…

Q: Which of the following choices correctly denotes the data needed to allocate joint costs under the…

A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…

Q: A decision that involves potential further processing of joint products is which kind of decision?…

A: Introduction: - One of the most important Decisions relating to dropping existing products or adding…

Q: he distinction between indirect and direct costs depends on: Select one: a. whether a cost differs…

A: Direct cost means the cost which can be related with the production of specific goods directly like…

Q: Costs that will differ between alternatives and influence the outcome of a decision are Select one:…

A: Sunk costs are expenses that have already been incurred but cannot be recovered. Sunk costs are…

Q: Which of the following option is correct regarding difference in activity-based costing when…

A: Simple costing and activity based costing does not yield in similar since the cost drivers will…

Q: elevant for decision making purposes. Explain ii. Why opportunity cost is measured and relate with…

A: SOLUTION-1 DIFFERENTIAL COSTS OR RELEVANT COST -THEY ARE THE COST THAT IS AFFECTED BY THE DECISION…

Q: 1. Select two decisions-one common to a manufacturer and the other common to a service…

A: Manufacturing Entity: A manufacturing business is defined as any firm that manufactures completed…

Q: A cost - based transfer price considers the cost of producing the goods when determining the price.…

A: At the time of determining the prices of the goods, the cost of goods-producing is required to be…

Q: What should be considered when deciding whether a joint product should be sold at the split-off…

A: .Joint products are two or more products that are generated with a single production process. They…

Q: a) Briefly describe the treatment of Joint Costs when making a sell-or-process-further decision.

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Allocating costs for joint products can be done by: a. Sales Value Approach O b. Contribution Margin…

A: Joint Products:- Joint products are defined as the products that are produced in a single production…

Q: Give the general formula for a mixed cost. What does each term represent?

A: Given: The general formula for the mixed cost is given.

Q: Company A is currently manufacturing a component but is considering buy reliable supplier. Which of…

A: The avoidable fixed cost is the cost that does not change with the output but can be avoided in…

Question

Briefly describe the treatment of Joint Costs when making a sell-or-process-further decision.

2. What is the decision rule in deciding whether to sell a product or process it further?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1 Introduction

VIEW

Step 2 Treatment of Joint Costs when making a sell-or-process further decision:

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

What is a general rule to remember with respect to a sell-or-process-further environment, and what costs are irrelevant to the decision?
Why are there objections to using absorption costing when segment reports of profitability are being prepared?
a) Briefly describe the treatment of Joint Costs when making a sell-or-process-further decision. b) What is the decision rule in deciding whether to sell a product or process it further?
Is there a difference between relevant costs and incremental costs? Explain. Identify at least two (2) irrelevant costs in a make vs buy decision
What are joint costs? How do they affect the sell or process further decision?
“Sunk costs are considered by a manufacturer in decision making”. Do you agree? Explain.
“Relevant costs for pricing decisions are full costs of the product.” Do you agree? Explain.
Decisions where relevant cost analysis might be used effective is Sell or process decisions. Explain IN YOUR OWN WORDS what "sell or process decision" is AND MUST USE EXAMPLES IN YOUR DESCRIPTION.
How cost accounting covers the problem of Evaluation of alternative while buying
Determining the transfer price as the price at which the product or service transferred could be sold to outside buyers is known as the Oa. cost price approach Ob. negotiated price approach Oc. market price approach Od. revenue price approach
Relevant Cost for non-routine decision making: Sell or Process Further How much is the incremental profit/loss for product A, B, C
What is a product cost? What is a period cost? What is the difference and why is it important to separate these costs in financial reporting and decision-making? What is a variable cost? What is a fixed cost? Why is the difference important to making decisions?