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Easier for managers to understand

Absorption costing
B. Marginal costing

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Shows the lowest price at which a product can be sold in the long term

Absorption costing
B. Marginal costing

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Pear Co manufactures a product that passes through one process, Process P. During the month of July, the following related to Process P.All losses have a scrap value of $1.25.What is the full cost value of the normal losses credited to Process P for July?

A. $500
B. $750
C. $1,000
D. $600

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Which TWO of the following statements about joint products are TRUE?

A. It is a product that is produced in collaboration with another organisation
B. It is a product that requires input from two or more processes
C. It is when two or more products of significant value that are produced simultaneously
D. They are products that will only become separately identifiable following a split-off point

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Process 1 results in two products, Product Why and Product Zee, the sales values of which are as follows:Product Why: $1.73 per kg Product Zee: $56.02 per kgWhich of the below statements best describes the relationship between these two products?

A. Product Why is a by-product of Product Zee
B. Product Zee is a by-product of Product Why
C. Products Why and Zee are joint products
D. There is not enough information to determine whether or not these products are related

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Easier for managers to understand

Absorption costing B. Marginal costing

Shows the lowest price at which a product can be sold in the long term

Pear Co manufactures a product that passes through one process, Process P. During the month of July, the following related to Process P.All losses have a scrap value of $1.25.What is the full cost value of the normal losses credited to Process P for July?

Which TWO of the following statements about joint products are TRUE?

Process 1 results in two products, Product Why and Product Zee, the sales values of which are as follows:Product Why: $1.73 per kg Product Zee: $56.02 per kgWhich of the below statements best describes the relationship between these two products?

Absorption costing
B. Marginal costing