A number of terms are listed below:
Byproduct......... constant gross margin percentage
estimated net realizable value.. joint products
main product ........ physical measure
product ........ sales value at splitoff
scrap .......... separable costs
splitoff point
REQUIRED
Select the terms from the above list to complete the following sentences.
Companies provide value-added to their customers through the sale of more than one
_______. A product is any output or service that can be sold for a price that recovers the total costs to bring the product to the customer plus some reasonable profit. Some products yield both a ____________ with the highest sales price, a __________ that requires little if any further processing but is sold for a far lower price, and _____, which is usually unused direct materials recovered and sold for almost nothing. Two or more products of sold at a high price are called joint products. The costs of producing more than one product can be common
Or
___________ plus _______________ to complete each product. The ______________ determines what pool comprises the joint costs that must be allocated on a reasonable basis. The allocation methods are _________________________________, _______________________,_________________________________, ________________. The task of the management team is to select the method of joint cost allocation that best represents what actually happened in the physical production process.