In a joint process of production, product which yields low volume of sales as compared to total sales of other products is known as
A. Second incremental product
B. First incremental product
C. step down product
D. by-product
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Difference between final sales value and separable costs is equal to
A. net income
B. net realizable value
C. Gross margin
D. Gross realizable value
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As compared to sale value of main products, by-products have
A. low sale value
B. high sale value
C. unstable sale value
D. relevant sale value
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If final sales are 50000 an d se p a r ab l ecos t s a r e 35000, then net realizable value will be
A. $15,000
B. $85,000
C. $35,000
D. $50,000
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Joint cost allocation method, in which individual product from joint products must gain a gross margin percentage is classified as
A. sales value at split off method
B. joint products value at split off method
C. constant gross margin percentage NRV method
D. Gross realizable value method
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Manufacturing, distribution and marketing costs incur after split off point is classified under
A. separable costs
B. joint costs
C. main costs
D. split off costs
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Method which allocates joint costs of joint products, considering physical measures such as volume or relative weight at point of split off is known as
A. direct cost measure method
B. indirect cost measure method
C. physical-measure method
D. relative-measure method
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If value of final sales is 48000 an d n e t r e a l i z ab l e v a l u e i s 35000, then value of sales costs would be
A. $35,000
B. $13,000
C. $83,000
D. $48,000
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Second step, in constant gross margin percentage NRV method, to allocate joint cost is to compute
A. allocated joint costs
B. cost of split off point
C. Gross margin percentage
D. total production cost of each product
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In a joint process of production, a product which yields high volume of sales as compared to total sales volume of other products is known as
A. incremental product
B. sunk product
C. main product
D. split off product
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An expected future revenue, which diverges in unconventional course of action is classified as
A. partial revenue
B. total revenue
C. relevant revenues
D. irrelevant revenues
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Gross margin is subtracted from sales value of all production to yield
A. labour cost incurred on product
B. production cost incurred on product
C. marketing cost incurred on product
D. all of above
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In a joint process of production, two or more products that yield high volume of sales as compared to total sales of other products are classified as
A. split off product
B. joint product
C. sunk product
D. main product
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Joint cost allocation method for joint products, which is based on achievable value is known as
A. joint products value at split off method
B. main product cost at split off method
C. Gross realizable value method
D. net realizable value method
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Any output that has total positive sales is a
A. joint product
B. main product
C. product
D. all of above
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Point in joint production process, in which two or more products are separately identifiable is termed as
A. step down point
B. incremental point
C. split off point
D. inseparability point
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Costs incurred in production process that yield range of products simultaneously are known as
A. separable costs
B. joint costs
C. main costs
D. split off costs
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Percentage of overall gross margin is multiplied to final sales value of products total production is used to calculate
A. Gross margin in terms of amount of money
B. Gross margin in terms of separable costs
C. Gross margin in terms of total cost
D. Gross margin in terms of labour cost
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Final sales is subtracted from net realizable value is used to calculate
A. separable costs
B. inseparable costs
C. joint costs
D. floating costs
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If percentage of overall gross margin is 15 and final sales value of whole production is $20000, then gross margin (in dollars) will be
A. $30,000
B. $300,000
C. $40,000
D. $400,000
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