TRUE/FALSE. Write "T" if the statement is true and 'F' if the statement is false. 1) In joint costing, using physical measures at split-off to allocate costs enables the accountant to obtain individual product costs and gross margins. 2) Joint costs are the costs of processing that are incurred after the split-off point. 3) In joint costing, the sales value at split-off method allocates joint costs entirely to joint products sold during the accounting period on the basis of the relative total sales value at the split-off point. 1) 2) 3) 4) One of the reasons to allocate joint costs to individual products is to have costs reimbursed under a 4) federal cost-plus contract. 5) The constant gross-margin percentage NRV method is the only method of allocating joint costs under which products may receive negative allocations. 5) 6) The only allowable method of joint cost allocation is net realizable value which is specified by FASB. 6) 7) The production method for recognizing byproducts is simpler and is often used in practice, primarily because the dollar amounts of byproducts are immaterial. 7) 8) In joint costing, the sales value at split-off method is typically used in preference to the NRV method only when net realizable value for one or more products at split-off do not exist. 8) 9) Allocating joint costs to individual products can be helpful for litigation settlement purposes in which the costs of joint products or services are key inputs. 9) 10) In joint costing, outputs with no sales value are always excluded when costs are allocated using physical measures. 10) 11) The constant gross-margin percentage method differs from market-based joint-cost allocation method (sales value at split-off and estimated net realizable value) since no account is taken of profits earned before or after the split-off point when allocating joint costs. 11) 12) The constant gross-margin percentage NRV method is the only method whereby products can receive negative allocations. 12) 13) The net realizable value (NRV) method makes the assumption that products will be processed beyond the splitoff point. 13) 14) All separable costs in joint-cost allocations are always incremental costs. 14) 15) 15) Separable costs include manufacturing costs only. 16) The sales method of accounting for byproducts allows companies to manage its reported earnings by the timing of the sale of byproducts. 16) 17) When a joint production process yields one product with a high total sales value compared to the total sales value of the other products of the process, that product is called a joint product. 17) 18) Byproducts are recognized in the general ledger either at the time production is completed or at the time of sale. 18) 19) In joint costing, the constant gross-margin percentage method recognizes that the profit margin is not just attributable to the joint process but is also derived from the costs incurred after split-off. 20) Before the split-off point, decisions relating to the sale or further processing of each identifiable product cannot be made independently of decisions about the other products. 19) 20)