1.

If an entity uses the relative sales value method, how would joint costs be allocated between products?

Select one:

A.In proportion to the separable costs at split-off point

B.In proportion to their sales value at split-off point

C.In proportion to cost of production of a joint product

D.In proportion to their profit margin at split-off point

2.

A company produces a product known as Hydro. The company uses a standard costing system and provides you with the following information:

• Direct materials required to produce 1 unit of Hydro: 10 kgs
• Standard cost of direct materials: $6 per kg
• Budgeted cost of direct materials: $5.75 per kg
• Normal wastage while producing one unit of Hydro: 0.5 kgs

Based on the above information, what is the standard direct materials cost per unit of product Hydro?

3.

A cost pool is:

Select one:

A.the primary function of a responsibility accounting system.

B.a performance report of the lowest level manager.

C.a collection of costs to be assigned.

D.the joint result of several subunit activities.