are joint cost allocations useful? For what purpose should the managerial accountant be careful to not...
are joint cost allocations useful? For what purpose should the managerial accountant be careful to not use joint cost allocations?
Homework Answers
JOINT PRODUCT COSTS OCCUR IN MANY INDUSTRIES SUCH AS PETROLEUM,OIL REFINERY, DAIRY, FOOD PROCESSING AND MANY OTHER PROCESSING INDUSTRIES. MANAGEMENT OF BUSINESS CONCERNS REQUIRE ACCURATE AND RELIABLE COST INFORMATION RELATED WITH THE JOINT PRODUCTS TO MAKE MANAGERIAL DECISIONS SUCH AS TO PROCESS FURTHER OR SELL AT SPLIT OFF STAGE.TO ARRIVE AT EITHER DECISION , IT IS NECESSARY TO KNOW THE SHARE OF JOINT COSTS TO BE ALLOCATED TO THE DIFFERENT JOINT PRODUCTS.JOINT COSTS ARE THE EXPENDITURES INCURRED UPTO THE POINT OF SEPARATION THAT IS SPLIT OFF POINT THE MAIN PROBLEM FACED IN THE CASE OF JOINT PRODUCTS. PROPER ALLOCATION OF JOINT COST OVER THE JOINT PRODUCT IS CONSIDERABLE IMPORTANCE AS THIS AFFECT(A) VALUATION OF CLOSING INVENTORY (b) PRICING OF PRODUCTS (C)PROFIT OR LOSS ON THE SALE OF DIFFERENT PRODUCTS.
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are joint cost allocations useful? For what purpose should the
managerial accountant be careful to not...
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If a managerial accountant were to question the ethical behavior of a colleague, what course of action do you think the accountant should take?
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The managerial accountant at Organic Beverage Factory used spreadsheet software to run a regression analysis scenario and compile the following monthly cost data: Organic Beverage Factory Intercept coefficient X Variable 1 Coefficient R-square $4,286,652 $28.21 0.6521 Based on the results of the regression analysis compiled by the managerial accountant, what does the R-square indicate? O A. Management should use the cost equation with caution. O B. Management ignores the R-square in regression analysis. O c. Management can rely on the...
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