By-Product Costing Approaches Include

question 55

Multiple Choice

By-product costing approaches include:

• A)Activity-based approach.
• B)Cost approach.
• C)Asset recognition approach.
• D)Resource consumption approach.
• E)Sales value at split off approach.

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Definitions:

Machine-Hours

A measure of production output or operational time, calculated by the number of hours a machine is run during a specific period.

Markup

A pricing strategy where a seller adds to the cost of the goods to determine the selling price, aimed at ensuring a profit margin above cost.

Selling Prices

The actual amount that a customer pays for a product or service, which can include discounts, promotions, and taxes.

Markup

The amount added to the cost price of goods to cover overhead and profit, determining the selling price of the product.