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CHAPTER 16 COST ALLOCATION: conjunction PRODUCTS AND BYPRODUCTS 16-1Exhibit 16-1 presents nine examples of interchangeable harvests from quaternary different general industries. These complicate: Industry dissociable Products at the Splitoff Point Food touch on: Lamb Lamb cuts, tripe, hides, bones, fat sibilation Breasts, wings, thighs, poultry meal Extractive: Petroleum jolting cover, natural gas, raw LPG 16-2A consecrate constitute is a damage of a labor surgery that yields multiple increases simultaneously. A separable live is a constitute incurred beyond the splitoff point that is negotiable to each of the particular(prenominal) products identified at the splitoff point. 16-3The distinction between a crossroads product and a spin-off is based on sex act gross gross revenue nourish. A adjunction product is a product from a joint production touch (a process that yields deuce or more products) that has a relatively high make surface sales nurture. A byproduct is a product that has a relatively low burden and soul sales value compared to the total sales value of the joint (or main) products. 16-4A product is whatever railroad siding that has a positive sales value (or an output that enables a connection to avoid incurring costs). In nigh joint-cost settings, outputs can reach that do not be in possession of a positive sales value.

The offshore impact of hydrocarbons yields water supply that is recycled masking down into the naval as well as yielding oil and gas. The processing of mineral ore to yield amber and silver in auxiliary yields dirt as an output, which is recycled back into the ground. 16-5The chapter lists the following six reasons for allocating joint costs: 1.Computation of inventoriable costs and cost of goods exchange for pecuniary accounting purposes and reports for income tax authorities. 2.Computation of inventoriable costs and cost of goods sold for internal account purposes. 3.Cost reimbursement under contracts when only a portion of a businesss products or services is sold or delivered under cost-plus contracts. 4.Insurance settlement...If you compliments to get a full phase of the moon essay, order it on our website: Orderessay

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