If a Company Produces Two Products, a and B, from a Joint

question 46

Multiple Choice

If a company produces two products, A and B, from a joint process, and B requires additional processing after the split-off in order to be salable, how is the joint cost allocated to B determined?

• A)The costs of the additional processing are ignored in allocating joint costs.
• B)The costs of the additional processing are subtracted from the joint costs allocated to B.
• C)The relative sales value used to allocate the joint cost are determined after the costs of further processing are subtracted from the ultimate sales value of B.
• D)None of these are correct.

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Definitions:

Dating Cohabitation

A living arrangement in which a couple who spends a great deal of time together eventually decides to move in together.

Census Bureau

A national agency responsible for collecting, analyzing, and publishing statistical data about the population, economy, and society of a country, typically on a regular basis.

Substitute Marriage Cohabitation

A living arrangement where couples live together as if married without legally formalizing the union.

Common-law Marriage

A marriage recognized in some jurisdictions, where a couple lives together for a period and presents themselves as married without having a formal ceremony or license.