Joint Products and By-Products Are Produced Simultaneously by a Single

question 54

Multiple Choice

Joint products and by-products are produced simultaneously by a single process or series of processes and:

• A) Joint products are salable at the split-off point, but by-products are not.
• B) By-products are salable at the split-off point, but joint products are not.
• C) The revenue from by-products may be recognized at the time of production.
• D) All by-products must be allocated some portion of joint costs.

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Definitions:

Variable Manufacturing Overhead

Costs in manufacturing that vary with the level of production output, such as materials and labor directly involved in production.

Direct Labor-hours

The total hours worked by employees directly involved in the manufacturing process or producing a service, often used as a basis for allocating overhead costs.

Direct Materials

Raw materials that can be directly associated with the production of specific goods or services.

Standard Cost Card

A document that lists the expected costs of materials, labor, and overhead associated with producing a particular product or performing a service.