Andrew Berwick has been asked by his aged aunt to take over the family butcher shop. Andrew has learned that you are majoring in accounting-he majored in art-and asks you to help him understand the butcher shop business. He wants you to do the following:
a. Explain, in nontechnical terms, what questions about joint processes someone who manages a butcher shop must answer. Also, indicate the points in a joint process at which these questions should be addressed.
b. Describe, in your own words, the proper managerial use of a joint cost; also, describe whether a joint cost may be used inappropriately and the basis on which you think a particular use is inappropriate.
c. Compare and contrast the various categories of outputs generated by a joint process.