Product X-547 Is One of the Joint Products in a Joint

question 289

Multiple Choice

Product X-547 is one of the joint products in a joint manufacturing process. Management is considering whether to sell X-547 at the split-off point or to process X-547 further into Xylene. The following data have been gathered:Selling price of X-547Variable cost of processing X-547 into Xylene.The avoidable fixed costs of processing X-547 into Xylene.The selling price of Xylene.The joint cost of the process from which X-547 is produced.Which of the above items are relevant in a decision of whether to sell the X-547 as is or process it further into Xylene?

• A) I, II, and IV.
• B) I, II, III, and IV.
• C) II, III, and V.
• D) I, II, III, and V.

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Definitions:

Close Running

Fit type characterized by a small but non-restrictive clearance that allows components to move together smoothly without excessive play or looseness.

Grades

Levels of quality or size in a uniform set of specifications, or levels of academic achievement in educational contexts.

Ø30 f7 Fit

A specification for a cylindrical fit where Ø30 defines the nominal diameter in millimeters and f7 specifies the tolerance class for a hole.

High Precision Fit

Refers to a high degree of accuracy in the mating of two machine parts, ensuring minimal play or clearance between them.