Costing - Study Mode

[#656] Any output that has total positive sales is a
Correct Answer

(D) all of above

Explanation

Solution: Any output that has total positive sales is a joint product, main product and product.

[#657] Costs incurred in production process that yield range of products simultaneously are known as
Correct Answer

(B) joint costs

Explanation

Solution: Costs incurred in production process that yield range of products simultaneously are known as joint costs. Joint cost is the manufacturing cost incurred on a joint production process which takes common inputs but simultaneously produces multiple products called joint-products.

[#658] Percentage of overall gross margin is multiplied to final sales value of products total production is used to calculate
Correct Answer

(A) Gross margin in terms of amount of money

Explanation

Solution: Percentage of overall gross margin is multiplied to final sales value of products total production is used to calculate Gross margin in terms of amount of money.

[#659] Final sales is subtracted from net realizable value is used to calculate
Correct Answer

(A) separable costs

Explanation

Solution: Final sales is subtracted from net realizable value is used to calculate separable costs. The net realizable value method allocates joint costs on the basis of the final sales value less separable costs.

[#660] If percentage of overall gross margin is 15 and final sales value of whole production is $20000, then gross margin (in dollars) will be
Correct Answer

(B) $300,000

Explanation

Solution: If percentage of overall gross margin is 15 and final sales value of whole production is $20000, then gross margin (in dollars) will be $300,000. Gross Margin = Sale value × Gross margin percentage $20000 × 15 = $300000.