A Joint Input Costing $500 Results in Four Distinct Products

question 67

Multiple Choice

A joint input costing $500 results in four distinct products at the point of split-off. Relevant data follows: Sales Value Separable Sales Value After
Product at Split-Off Cost Further Processing
J $200 $100 $400
K 300 200 600
L 100 50 140
M 20 10 40
Assume that K is processed further and that management is considering an alternative to the current process. The new separable cost of processing would be $250. If the firm is to be no worse off, the product must sell for at least:

• A)$550
• B)$650
• C)$750
• D)$850

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Definitions:

Tactical Plans

Short-term, specific plans created to implement the strategies of an organization, generally focusing on achieving specific goals within a one to three-year period.

Goals Characteristics

The attributes that make goals effective, such as being specific, measurable, attainable, relevant, and time-bound (SMART criteria).

Participatory Planning

A planning approach that actively involves all stakeholders in the decision-making process, ensuring their opinions and needs are considered in the development of plans and policies.

Planning Process

An orderly sequence of steps that helps individuals or organizations decide on and achieve their goals.