If the Joint Production Costs Are Allocated Based on the Net-Realizable-Value

question 72

Multiple Choice

If the joint production costs are allocated based on the net-realizable-value method,the amount of joint cost assigned to product Y would be:

• A)$20,000.
• B)$27,000.
• C)$33,000.
• D)$40,000.
• E)some other amount.

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Definitions:

Command Economic System

In this type of economic structure, a central government or authority is responsible for making decisions about how goods and services are produced and distributed.

Goods And Services

Physical products and intangible activities that fulfill the needs or wants of consumers, forming the basis of all economic activity.

Production Possibilities Curve

A graphical representation that shows the different combinations of two goods or services that can be produced within a given resource constraint.

Fully Employed

A situation in which all available labor resources are being used in the most economically efficient way.