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Weighted Average Method–Allocating Joint Product Cost: Learning Objectives: Explain the procedure of allocating joint product cost when weighted average method is used. many industries, the previously described methods do not…
Learning Objectives: Define and explain replacement cost method. What is the use of replacement cost method while cost by-products? Replacement cost method ordinarily is applied by firms whose by-products are…
Recognition of Net Revenue Method–By Product Costing: This method recognizes the need for assigning some cost to the by-product. It does not attempt, however, to allocate any main product cost…
Recognition of Gross Revenue Method–By Products Costing: This method is typical non-cost procedure in which the final inventory cost of the main product is overstated to the extent that some…
Market Value Method or Reversal Cost Method: Learning Objectives: Define and explain market value method. Explain the use of market value method while costing by-products Market value method or Reversal…
Market or Sales Value Method–Allocation of Joint Cost: Learning Objectives: Explain the market value method or sales value method of joint cost allocation between products. Market or sales value method…
Difficulties / Problems in Costing by Products and Joint Products: By products and joint products are difficult to cost because a true joint cost is indivisible. For example, an ore…
Joint Product Cost Analysis for Managerial Decisions and Profitability Analysis: Learning Objectives: What is the importance of joint product cost analysis for management. The Securities and Exchange Commission requires that…
By Products and Joint Products: After studying this chapter you should be able to: Many industrial concerns are confronted with the difficult and often rather complicated problem of assigning costs…
By-Products and Main Products: Learning Objectives: Define and explain By-Products. Definition and Explanation of By Products: The term “by product” is generally used to denote one or more products of…
Characteristics of Joint Products and Joint Cost: Many products or services are linked together by physical relationships which necessitate simultaneous production. To the point of split-off or to the point…
Abida Rehman
Shamsa Rafique
Sana Ahmed