costaccttestbankchapter16.docVIP

Cost Accounting, 14e (Horngren/Datar/Rajan) Chapter 16 Cost Allocation: Joint Products and Byproducts Objective 16.1 1) What type of cost is the result of an event that results in more than one product or service simultaneously? A) byproduct cost B) joint cost C) main cost D) separable cost Answer: B Diff: 2 Terms: joint costs Objective: 1 AACSB: Reflective thinking 2) All costs incurred beyond the splitoff point that are assignable to one or more individual products are called: A) byproduct costs B) joint costs C) main costs D) separable costs Answer: D Diff: 2 Terms: separable costs, splitoff point Objective: 1 AACSB: Reflective thinking 3) In joint costing: A) costs are assigned to individual products as assembly of the product occurs B) costs are assigned to individual products as disassembly of the product occurs C) a single production process yields two or more products D) Both B and C are correct. Answer: D Diff: 3 Terms: joint costs Objective: 1 AACSB: Reflective thinking 4) The ________ point is the juncture in a joint production process when two or more products become separately identifiable. A) splitoff B) joint product C) process D) end Answer: A Diff: 3 Terms: splitoff point, main products, joint products Objective: 1 AACSB: Reflective thinking 5) The focus of joint costing is on allocating costs to individual products: A) before the splitoff point B) after the splitoff point C) at the splitoff point D) at the end of production Answer: C Diff: 3 Terms: joint costs, splitoff point Objective: 1 AACSB: Reflective thinking 6) When a single manufacturing process yields two products, one of which has a relatively high sales value compared to the other, the two products are respectively known as: A) joint products and byproducts B) joint products and scrap C) main products and byproducts D) main products and joint products Answer: C Diff: 2 Terms: main products, byproducts Objective: 1 AACSB: Reflect