S026. In joint process, outputs with a negative sales value are: a) added to cost of goods sold b) added to c) added to joint production costs and allocated to byproducts and scrap d) subtracted from product revenue joint production costs and allocated to joint or main products Q27. Which of the following statements is true? a) Expenses reported income statements. are not usually separated into variable and fixed elements in externally b) Even if there is no change in units sold, selling price, or cost structure, a company can increase its absorption costing net operating income from one year to the next just by producing units. more c) When finished goods inventory decreases during a period, a manufacturing company s absorption costing net operating income for that period will usually be greater than its variable costing net operating income. d) Both A and B above. Q28. Lakeside Nursing Home has two operating departments, Custodial Care and Housekeeping Department that serves the two operating charged to the Rehabilitation. It also has a departments. The costs of the Housekeeping Department are all variable and are operating departments on the basis of labor-hours. Data for September follow: Custodial Care Rehabilitation 1,000 Budgeted labor-hours.. Actual labor-hours... 3,000 1.600 3.200 The budgeted costs of the Housekeeping Department for September were $24,000 and the actual costs were How much of the actual Housekeeping Department costs for September should not be charged to the operating departments for performance evaluation purposes? $29,760. a) $960 b) $5,760 c) S0 d) $1,240