Question

In a sell-or-process-further decision, the decision will be to sell at the split-off point if the...

In a sell-or-process-further decision, the decision will be to sell at the split-off point if the incremental revenue from processing further is:

a) less than the costs of the common process

b) less than the incremental cost of processing

c) more than the incremental cost of processing

d) less than the revenue from selling at the split-off point

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Answer- In a sell-or-process-further decision, the decision will be to sell at the split-off point if the incremental revenue from processing further is= less than the incremental cost of processing.

Explanation- The decision will be to sell at the split-off point if the incremental revenue from processing further is less than the incremental cost of processing.

Add a comment
Know the answer?
Add Answer to:
In a sell-or-process-further decision, the decision will be to sell at the split-off point if the...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Net Realizable Value Method, Decision to Sell at Split-off or Process Further Pacheco, Inc., produces two...

    Net Realizable Value Method, Decision to Sell at Split-off or Process Further Pacheco, Inc., produces two products, overs and unders, in a single process. The joint costs of this process were $50,000, and 15,000 units of overs and 35,000 units of unders were produced. Separable processing costs beyond the split-off point were as follows: overs, $20,000; unders, $19,900. Overs sell for $2.00 per unit; unders sell for $3.14 per unit. Required: 1. Allocate the $50,000 joint costs using the estimated...

  • SELL AT SPLIT – OFF POINT OR PROCESS FURTHER & JOINT COST ALLOCATION Lauricella Inc. produces...

    SELL AT SPLIT – OFF POINT OR PROCESS FURTHER & JOINT COST ALLOCATION Lauricella Inc. produces three products from a common set of inputs for $95,000. Other sales and cost data follow:                                                                                 Unit Sales Price ____          Costs After                                                                                 At                     After further            Split-off                Product             Quantity            Split-off                Processing               Point__                Regular               8,000                  $ 8                            $ 10                  $ 10,000                Special                5,000                      5                                  8                     15,000                Premium             4,000                      6                                10                     20,000 REQUIRED: Which products should...

  • Net Realizable Value Method, Decision to Sell at Split-off or Process Further Pacheco, Inc., produces two...

    Net Realizable Value Method, Decision to Sell at Split-off or Process Further Pacheco, Inc., produces two products, overs and unders, in a single process. The joint costs of this process were $50,000, and 14,000 units of overs and 35,000 units of unders were produced. Separable processing costs beyond the split-off point were as follows: overs, $18,000; unders, $19,900. Overs sell for $2.00 per unit; unders sell for $3.14 per unit. Required: 1. Allocate the $50,000 joint costs using the estimated...

  • Sell at Split-Off or Process Further Decision, Alternatives, Relevant Costs Betram Chemicals Company processes a number...

    Sell at Split-Off or Process Further Decision, Alternatives, Relevant Costs Betram Chemicals Company processes a number of chemical compounds used in producing industrial cleaning products. One compound is decomposed into two chemicals: anderine and dofinol. The cost of processing one batch of compound is $78,000, and the result is 5,800 gallons of anderine and 8,000 gallons of dofinol. Betram Chemicals can sell the anderine at split-off for $12.00 per gallon and the dofinol for $6.75 per gallon. Alternatively, the anderine...

  • A sell-or-process further decision involves deciding whether to Accept a special order for a price lower...

    A sell-or-process further decision involves deciding whether to Accept a special order for a price lower than normal Continue a product line or eliminate it Sella product as is or continue to refine it Produce a product in-house or outsource it Knowledge Check 02 Potomac Backpacks, Inc. manufactures regular backpacks. The company is considering processing these backpacks further to produce hiking backpacks. A summary of the expected costs and revenues for both of these options follows: Hiking Backpacks Ordinary Activity...

  • Cornerstone Exercise 17.4 (Algorithmic) Sell at Split-Off or Process Further Decision, Alternatives, Relevant Costs Betram Chemicals...

    Cornerstone Exercise 17.4 (Algorithmic) Sell at Split-Off or Process Further Decision, Alternatives, Relevant Costs Betram Chemicals Company processes a number of chemical compounds used in producing industrial cleaning products. One compound is decomposed into two chemicals: anderine and dofinol. The cost of processing one batch of compound is $75,000, and the result is 5,500 gallons of anderine and 8,100 gallons of dofinol. Betram Chemicals can sell the anderine at split-off for $10.00 per gallon and the dofinol for $6.05 per...

  • Exercise 13-6 Sell or Process Further (LO6) Dorsey Company manufactures three products from a common input...

    Exercise 13-6 Sell or Process Further (LO6) Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $350,000 per quarter. The company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product Selling Price Quarterly Output A $16 per pound 15,000 B $8 per...

  • Sell at Split-Off or Process Further Decision, Alternatives, Relevant Costs Betram Chemicals Company processes a number...

    Sell at Split-Off or Process Further Decision, Alternatives, Relevant Costs Betram Chemicals Company processes a number of chemical compounds used in producing industrial cleaning products. One compound is decomposed into two chemicals: anderine and dofinol. The cost of processing one batch of compound is $79,000, and the result is 6,000 gallons of anderine and 7,600 gallons of dofinol. Betram Chemicals can sell the anderine at split-off for $11.00 per gallon and the dofinol for $5.95 per gallon. Alternatively, the anderine...

  • Which of the following is not relevant to a sell-or-process further decision? Multiple Choice The opportunity...

    Which of the following is not relevant to a sell-or-process further decision? Multiple Choice The opportunity cost of spending resources processing the product further. The cost of processing the product "as is." The incremental revenue from processing the product further. 0 0 The cost of processing the product further.

  • Sell or Process Further Dorsey Company manufactures three products from a common input in a joint...

    Sell or Process Further Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $375,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product A B С Selling Price $25 per pound $19 per pound...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT