Process Costing Flashcards
1
Q
How is the unit cost for joint product when the common costs is apportioned by physical measurement
A
Have an equal unit cost at the separation point
2
Q
What happens when we apportion common costs using market/sales value
A
All joint products will have the same gross profit percentage margin at the split-off point.
3
Q
Formula to calculate NRV for by-product
A
= Final sales value - Further processing cost
4
Q
Is common cost relevant in further processing decision ?
A
NO
5
Q
Is by-product a waste product
A
NO
By-product has a low value, but they still has a value and not a waste product
