Which of the Following Is False Concerning Manufacturing of Joint

question 26

Multiple Choice

Which of the following is False concerning manufacturing of joint products and joint costing?

• A) The number of outputs produced may exceed the number of products.
• B) An output from the process may be recycled without any value being added by its production.
• C) Some outputs from a joint process have no value and are not recognized in the accounting system.
• D) The physical quantity of outputs not recognized in the accounting system, can exceed the quantities of outputs that recognized in the accounting system.
• E) Joint processes always yield either scrap or byproducts.

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Definitions:

IRR

Internal Rate of Return, a financial metric used to estimate the profitability of potential investments through calculating the rate of return where the net present value of all the cash flows (both positive and negative) from a project or investment equal zero.

Payback Period

A rephrased definition: The duration needed to recover the initial expenditure on an investment through the cash flows it generates.

AAR

Average annual return, indicating the mean yearly profit or loss generated by an investment over a specified period.