Moore Manufacturing Company Makes Two Products from a Common Input

question 37

Multiple Choice

Moore Manufacturing Company makes two products from a common input. Joint processing costs up to the split-off point total £23,400. The company allocates the joint costs to the products on the basis of their total sales values at split-off. The total sales value at split-off for both products is the same. Each product may be sold at the split-off point or processed further. Data concerning one of these products are as follows: What is the minimum amount the company would accept for this product if it is to be sold at the split-off point?

• A) £10,000
• B) £21,700
• C) £20,000
• D) £26,700

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Definitions:

Contemporary Manager

A managerial role that focuses on modern management practices, embracing change, innovation, and the adaptation to new technologies and market demands.

Planned Change

An intentional, organized effort to alter processes, systems, or structures within an organization, often involving a structured methodology to manage the transition from a current state to a desired future state.

Management by Objectives

A strategic management model that aims to improve the performance of an organization by clearly defining objectives that are agreed upon by both management and employees.