110.For financial reporting, joint costs are assigned to the product with the highest sales value.
True False
111.The split-off point is the point at which individual products resulting from a joint process can be identified.
True False
112.Joint costs are irrelevant in a decision to sell a joint product at the split-off point or process it further.
True False
113.Joint costs total $24,000 for a production process that yields two main products, A and B. If joint costs are allocated to the products on the basis of their respective $20,000 and $30,000 sales values, 2/3 of the joint costs ($16,000) would be allocated to Product A.
True False
114.The amount of joint costs allocated to a product must be considered when deciding whether to sell a joint product at the split-off point or later after additional processing.
True False
115.The direct method of allocating service department costs does not take into account the fact that service departments often provide assistance to other service departments.
True False
116.Services performed by service departments for the benefit of an operating department are called interdepartmental services.
True False
117.The step method of allocating service department costs allocates those costs to operating departments only.
True False
118.Use of the direct method to allocate service department costs may cause distortions in the measurement of cost objects.
True False
119.The method used to allocate service department costs can cause overstatement of costs for some cost objects and understatement for others.
True False
120.The direct method of allocating service department costs allocates those costs to operating departments only.
True False