Ramos Corporation Uses the Physical-Units Method to Allocate Costs Among

question 31

Multiple Choice

Ramos Corporation uses the physical-units method to allocate costs among its three joint products: X, Y, and Z. The following data are available for the period just ended:
Joint processing cost: $800,000
Total production: 150,000 pounds
Share of joint cost allocated to X: $160,000
Share of joint cost allocated to Y: $400,000
Which of the following statements is true?

• A) The company would have relied on the sales value of each product when allocating joint costs to X, Y, and Z.
• B) Ramos produced 30,000 pounds of Z during the period.
• C) Ramos produced 45,000 pounds of Z during the period.
• D) Ramos produced 105,000 pounds of Z during the period.
• E) Based on the data presented, it is not possible to determine Ramos' production of Z during the period.

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Definitions:

Nash Equilibrium

A concept in game theory where no player can benefit by changing strategies while the other players keep their strategies unchanged.

Maximin Strategy

A decision-making rule used in game theory and statistics to maximize the minimum gain that can be achieved.

Dominant Strategy

In game theory, a strategy that is best for a player regardless of the strategies chosen by other players in the game.

Nash Equilibria

A concept in game theory where no player can gain by unilaterally changing their strategy, indicating a balance where each player's strategy is optimal given the other players' strategies.