Chapter 11--Allocation of Joint Costs and Accounting for By-Products
TRUE/FALSE
1.Joint costs occur after the split-off point in a production process
ANS:F
2.Joint costs occur before the split-off point in a production process
ANS:T
3.Joint costs are allocated to by-products as well as primary products.
ANS:F
4.The primary distinction between by-products and scrap is the difference in sales value.
ANS:T
5.The primary distinction between by-products and scrap is the difference in volume produced.
ANS:F
6.The point at which individual products are first identifiable in a joint process is referred to as the split-
off point
ANS:T
7.Joint costs include all materials, labor and overhead that are incurred before the split-off point.
ANS:T
8.Two methods of allocating joint costs to products are physical measure allocation and monetary
allocation.
ANS:T
9. A decision that must be made at split-off is to sell a product or process it further.
ANS:T
10.Allocating joint costs based upon a physical measure ignores the revenue-generating ability of
individual products.
ANS:T
11.Allocating joint costs based upon a physical measure considers the revenue-generating ability of
individual products.
ANS:F
journal article
Accounting for Joint CostsThe Accounting Review
Vol. 26, No. 2 [Apr., 1951]
, pp. 232-238 [7 pages]
Published By: American Accounting Association
//www.jstor.org/stable/240223
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The Accounting Review is the premier journal for publishing articles reporting the results of accounting research and explaining and illustrating related research methodology. The scope of acceptable articles embraces any research methodology and any accounting-related subject. The primary criterion for publication in The Accounting Review is the significance of the contribution an article makes to the literature.
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The American Accounting Association is the world's largest association of accounting and business educators, researchers, and interested practitioners. A worldwide organization, the AAA promotes education, research, service, and interaction between education and practice. Formed in 1916 as the American Association of University Instructors in Accounting, the association began publishing the first of its ten journals, The Accounting Review, in 1925. Ten years later, in 1935, the association changed its name to become the American Accounting Association. The AAA now extends far beyond accounting, with 14 Sections addressing such issues as Information Systems, Artificial Intelligence/Expert Systems, Public Interest, Auditing, taxation [the American Taxation Association is a Section of the AAA], International Accounting, and Teaching and Curriculum. About 30% of AAA members live and work outside the United States.
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