Which of the Following Statements Is True of Joint Costing

question 130

Multiple Choice

Which of the following statements is true of joint costing?

• A) The costs of a production process that yields multiple products simultaneously are called joint costs.
• B) Distribution costs incurred beyond the split-off point that are assignable to each of the specific products identified at the split-off point are considered as joint costs.
• C) The primary purpose of joint costing is to allocate the separable costs to the individual products that are eventually sold.
• D) Joint costing is less useful for companies which manufacture multiple products simultaneously from the same production process.

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Definitions:

Normal Time

The standard time that a task or operation should take under normal working conditions, used in planning and scheduling.

Standard Time

The amount of time prescribed for the completion of a job or task, based on average speed and efficiency under normal conditions.

Variable Allowance

An allowance or adjustment made for changes in costs or expenses that may vary over time, often used in budgeting and pricing.

Allowance Factor

A factor used to calculate the amount of material needed considering waste or inefficiency, often in manufacturing or budgeting.