Which of the Following Statements Regarding Joint Cost Allocation Is

question 153

Multiple Choice

Which of the following statements regarding joint cost allocation is not true?

• A)The sales value of the end products is the most common method used to allocate joint costs.
• B)Inventory cost and cost of goods sold computations for internal reporting purposes require joint cost allocation.
• C)Inventory cost and cost of goods sold computations for external reporting purposes require joint cost allocation.
• D)Joint cost allocation is unnecessary in deciding to sell or process further beyond the split-off point.

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Definitions:

Indictment

A formal charge or accusation of a serious crime, issued by a grand jury.

Grand Jury

A group of citizens called to decide whether probable cause exists to believe that a suspect committed the crime with which he or she has been charged and thus should stand trial.

Probable Cause

A reasonable basis for believing that a crime may have been committed, which is necessary for issuing warrants and making arrests.

Preliminary Hearing

An initial hearing in which a judge or magistrate decides if there is probable cause to believe that the defendant committed the crime with which he or she is charged.