If We Account for a Product as a By-Product,we Allocate

question 77

Multiple Choice

If we account for a product as a by-product,we allocate ________ to it.

• A) joint costs
• B) separable costs
• C) avoidable costs
• D) separable and joint costs

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Definitions:

Accounts Payable

Amounts a company owes to creditors for goods or services that have been bought on credit and are payable within a specified period.

Subsidiary Ledger

A detailed ledger that contains the details of transactions for individual accounts, which then summarize into the general ledger.

Control Account

An account in the general ledger used to summarize and consolidate transactions from multiple subsidiary accounts.

Accounts Payable Subsidiary Ledger

A book or file that contains, in alphabetical order, the name of the creditor and amount owed from purchases on account.