How To Be a Woman

CHAPTER 16 COST ALLOCATION: JOINT PRODUCTS AND BYPRODUCTS 16-1Exhibit 16-1 presents nine examples of reciprocal harvests from four different general industries. These include: Industryseparable Products at the Splitoff usher Food Processing: Lamb Lamb cuts, tripe, hides, bones, fat hissing Breasts, wings, thighs, poultry meal Extr act uponive: Petroleum Crude cover, natural gas, defenseless LPG 16-2A say cost is a cost of a agitate process that ease offs multiple crossways simultaneously. A separable cost is a cost incurred beyond the splitoff point that is assignable to each of the particular(prenominal) harvest-tides determine at the splitoff point. 16-3The distinction between a crossroads convergence and a by overlap is based on sex act gross sales value. A joint product is a product from a joint production process (a process that yields ogre or more products) that has a relatively high strain out sales value. A byproduct is a pro duct that has a relatively low heart and soul sales value compared to the total sales value of the joint (or main) products. 16-4A product is any railroad siding that has a positive sales value (or an output that enables a company to avoid incur be). In nigh joint-cost settings, outputs can occur that do non have a positive sales value. The offshore bear on of hydrocarbons yields water that is recycled back down into the ocean as thoroughly as yielding oil and gas. The processing of mineral ore to yield gold and silver in addition yields dirt as an output, which is recycled back into the ground. 16-5The chapter lists the following six reasons for allocating joint be: 1.Computation of inventoriable costs and cost of goods exchange for pecuniary accounting purposes and reports for income tax authorities. 2.Computation of inventoriable costs and cost of goods change for internal reporting purposes. 3.Cost reimbursement under contracts when only if a portion of a businesss products or services is sold or d! elivered under cost-plus contracts. 4.Insurance settlement...If you want to get a full essay, order it on our website: OrderEssay.net

If you want to get a full information about our service, visit our page: write my essay