Garrison Co

question 92

Multiple Choice

Garrison Co. produces three products — X, Y, and Z — from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Last year all three products were processed beyond split-off. Joint production costs for the year were $120,000. Sales values and costs needed to evaluate Garrison's production policy follow.The amount of joint costs allocated to product X using the sales value at split-off method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar) :

• A) $20,341.
• B) $25,352.
• C) $27,042.
• D) $33,687.
• E) $67,606.

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Definitions:

Divestiture

Selling off parts of the organization to refocus attention on core business areas.

Decentralized

Decentralized refers to the distribution of power, tasks, and decision-making away from a central authority, often to increase efficiency and responsiveness.

Bureaucratic

Describes an organizational structure that is characterized by strict procedures, formalities, and a clear hierarchy of authority.

Matrix

A hierarchical organizational structure that combines two or more lines of authority, such as product and geographical divisions, creating a grid or matrix of responsibilities.