Complete the sentences below.
1) Companies provide added value to their customers through the sale of their
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Part 2
2) A product is any output or service that can be sold for a price that recovers the total costs to bring the product to the customer plus some reasonable profit. Some production processes yield
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with the highest sales price,
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a byproduct
a main product
products
scrap
separable costs
that requires little if any further processing but is sold for a far lower price, and
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byproduct,
joint costs,
main product,
products,
scrap,
which is usually unused direct materials recovered and sold for almost nothing.
Part 3
3) Two or more products sold at a high price are called joint products. The costs of producing more than one product can be common or
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joint costs plus net realizable value
joint costs plus splitoff point
joint costs plus separable costs
net realizable value plus splitoff point
net realizable value plus separable costs
separable costs plus splitoff point
to complete each product.
Part 4
4) The
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constant gross margin percentage
main product
net realizable value
physical measure
products
sales value at splitoff
scrap
separable costs
splitoff point
determines what pool comprises the joint costs that must be allocated on a reasonable basis.
Part 5
5) The allocation methods are
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byproduct,
joint costs,
physical measure,
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products,
sales value at splitoff,
scrap,
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main products,
net realizable value,
separable costs,
and
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constant gross margin percentage.
splitoff point.
The task of the management team is to select the method of joint cost allocation that best represents what actually happened in the physical production process.