Select two limitations of the physical-measure method of joint-cost allocation.
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Give two limitations of the physical-measure method of joint-cost allocation. Show  Q: From a decision-making point of view, should joint costs be allocated among joint products? A: Click to see the answer Q: The joint costs allocated to product Y were A: Joint costs are those costs which are incurred for producing two or more than two products at the… Q: Define the following terms: joint products, joint costs, and split-off point. A: Joint Products: When two are more products are produced in a process using the same basic raw… Q: Define the following terms: joint products, joint costs, and split-off point. A: Joint products: When a single process is used to produce two or more products then such products are… Q: How are joint costs allocated? Explain and analyze using numerical example. A: Joint Costs In business different costs are incurred in the production process, but in certain… Q: How are joint costs allocated? Explain and analyze using numerical example. A: Hi student Since there are multiple questions, we will answer only first question. If you want… Q: How are joint costs allocated? Explain and analyze using numerical example A: The question is based on the concept of Cost accounting. Q: In a homogeneous cost pool, all costs have a similar cause-and-effect relationship with the cost-… A: The homogeneous cost pool is a collection of different costs whose changes are based on single base.… Q: Describe allocation of joint costs across products. A: Joint costs: It refers to direct labor, direct material and overhead costs incurred during the joint… Q: Define the term net realizable value, and explain how this concept can be used to allocate joint… A: Click to see the answer Q: Define the following terms: joint production process, joint costs, joint products, split-off point,… A: Joint production process: A joint production process results in two or more products, called as… Q: Classify each of the following costs incurred by FIT as fixed, variable, or mixed: A: Cost can be defined as the amount incurred for making the business operations run. For business… Q: Of the various methods used to allocate joint costs, which makes the most sense to you? A: In accounting a joint cost is referred to as that cost that is related to more than one product.… Q: In choosing the cost pool, the simplest allocation method is A: In choosing the cost pool, the simplest allocation method is b. Activity center allocation Q: What is a potential disadvantage of the reciprocal method? a. It is the most complex method of cost… A: Reciprocal method: It is the method in which the allocation of costs spent on other departments by… Q: Distinguish between two methods of allocating common costs. A: Cost Allocation Method: The cost allocation method is the method by which the costs to be assigned… Q: Using the NRV method, the amount of joint costs allocated to Jaxton is: A: Joint cost refers to the cost of producing two or more products that are gone through the same… Q: Using a physical measurement method, what amount of joint processing cost is allocated to product B?… A: Cost accounting is one of the branches of accounting. Under this branch, all types of costs incurred… Q: Compute the total joint product costs before allocation. A: Given that: GG Products, Inc., prepares tips and stems from a joint process using asparagus. It… Q: joint costs allocated to tad-yang by using the physical output method A: Direct materials P20,000 Direct labor P15,000 Factory overhead P7,000 Joint costs P42,000 Q: Provide three reasons for allocating joint costs to individual products or services. A: Joint cost is the cost of assembling that is incurred by an organization on a joint creation… Q: Provide three reasons for allocating joint costs to individual products or services. A: Joint Cost: Joint costing is a cost accounting term, which is referred to common costs incurred in… Q: Explain the relationship between the costs of flexible and committed resources, usage of resources,… A: Cost accounting system: Cost accounting system of an organization consists of procedures and… Q: Classify each cost element as either fixed, variable, or mixed A: Variable Cost: variable cost is the cost that varies in total cost with change in the unit… Q: Explain the advantages of conference method for estimating a cost function. A: Conference method: Conference method uses, perceptions, analysis, knowledge and related information… Q: Explain the following concepts: indirect materials Mixed cost Budgeting Margin of safety A: The total manufacturing cost of the product is determined by including the direct material, labor,… Q: Define and give examples of the following terms: cost pool, cost object, and cost allocation (or… A: Responsibility accounting: Responsibility refers to the several concepts and tools used by managers… Q: The following are approaches in allocating joint costs incurred up to split off point, except: a.… A: Solution: The following are approaches in allocating joint costs incurred up to split off point,… Q: Which of the following would be an acceptable measure of activity for a material handling activity… A: For a material handling activity cost pool, number of material moves and weight of materials moved… Q: What is the primary advantage of separately allocating fixed and variable indirect costs? A: Solution Concept Fixed cost Fixed cost are those cost which does not change with the… Q: A concept which is commonly employed with allocation bases related to size is A: Cost Allocation: The process of assigning the cost to the cost object is cost allocation. The cost… Q: Which among the following alternative methods of costing is related to the best use of physical… A: Since you have asked multiple questions, we will answer the first full question for you. Please… Q: Describe three criteria for evaluating cost functions and choosing cost drivers. A: Cost Function:Cost function represents the basic change comes in the total cost due to the change in… Q: Describe three criteria for evaluating cost functions and choosing cost drivers. A: Cost Function: Cost function represents the basic change comes in the total cost due to the change… Q: Describe one advantage and one disadvantage of prorating overapplied or underapplied overhead. A: Click to see the answer Q: Which of the following components of production are allocable as joint cost when a single… A: components of production costs are - Direct material Direct labor Overheads Q: Under activity-based costing, second stage allocation would involve: O a. Defining activity measures… A: Steps involved in Activity-based costing - Step 1 - identify and classify the activities involved… Q: In order to analyze the c-v-p relationship , what types of costs should be classified ? Why? A: C-V-P relationship means the cost volume and profit relationship. This is usually done to recognize… Q: An objection to the benefit-cost ratio method of comparing altermate projects is A: The process of analyzing the total benefits and total costs associated with the implementation of a… Q: Describe three different purposes for computing product costs? A: Product cost is the cost incurred to manufacture a product, it includes the material cost, labor… Q: What is the total Joint Product cost? A: Under this method joint cost is allocated on the basis of relative sales value at split- off point… 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. SEE MORE QUESTIONS Recommended textbooks for you Financial And Managerial Accounting ISBN:9781337902663 Author:WARREN, Carl S. Publisher:Cengage Learning, Managerial Accounting ISBN:9781337912020 Author:Carl Warren, Ph.d. Cma William B. Tayler Publisher:South-Western College Pub Principles of Cost Accounting ISBN:9781305087408 Author:Edward J. Vanderbeck, Maria R. Mitchell Publisher:Cengage Learning Survey of Accounting (Accounting I) ISBN:9781305961883 Author:Carl Warren Publisher:Cengage Learning Cornerstones of Cost Management (Cornerstones Ser... ISBN:9781305970663 Author:Don R. Hansen, Maryanne M. Mowen Publisher:Cengage Learning Principles of Accounting Volume 2 ISBN:9781947172609 Author:OpenStax Publisher:OpenStax College Financial And Managerial Accounting ISBN:9781337902663 Author:WARREN, Carl S. Publisher:Cengage Learning, Managerial Accounting ISBN:9781337912020 Author:Carl Warren, Ph.d. Cma William B. Tayler Publisher:South-Western College Pub Principles of Cost Accounting ISBN:9781305087408 Author:Edward J. Vanderbeck, Maria R. Mitchell Publisher:Cengage Learning Survey of Accounting (Accounting I) ISBN:9781305961883 Author:Carl Warren Publisher:Cengage Learning Cornerstones of Cost Management (Cornerstones Ser... ISBN:9781305970663 Author:Don R. Hansen, Maryanne M. Mowen Publisher:Cengage Learning Principles of Accounting Volume 2 ISBN:9781947172609 Author:OpenStax Publisher:OpenStax College How does the physical measure method allocate joint costs?The physical measure allocates joint costs to primary products based on a physical characteristic, such as units produced, or pounds or tons produced, barrels produced, or some other physical measure that is appropriate for the volume of output of the primary products.
What are the 3 methods that joint costs can be allocated?Three methods of allocating joint product costs are the physical units method, the market value method, and the net realizable method.
What is the physical quantities method of allocation?Quantitative or physical unit method attempts to distribute the total joint cost on the basis of some unit of measurement, such as pounds, gallons, tons, or board feet. Of course, the unit products must be measurable by the basic measurement unit.
Which method is the best for joint cost allocation?The splitoff method in cost accounting
Allocating joint costs using sales value at splitoff may be the most effective method for planning and budgeting for joint costs.
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