Which of the following statements is/are correct?(i)
A、by-product is a product produced at the same time as other products which has a relatively low volume compared with the other products(ii) Since a by-product is a saleable item it should be separately costed in the process account, and should absorb some of the process costs(iii) Costs incurred prior to the point of separation are known as common or joint costs
A、(i) and (ii)
B、(i) and (iii)
C、(ii) and (iii)
D、(iii) only
A、by-product is a product produced at the same time as other products which has a relatively low volume compared with the other products(ii) Since a by-product is a saleable item it should be separately costed in the process account, and should absorb some of the process costs(iii) Costs incurred prior to the point of separation are known as common or joint costs
A、(i) and (ii)
B、(i) and (iii)
C、(ii) and (iii)
D、(iii) only
【参考答案及解析】
Statement (i) is incorrect because the value of the product described could be relatively high even though the output volume is relatively low. This product would then be classified as a joint product.Statement (ii) is incorrect. Since a by-product is not important as a saleable item, it is not separately costed and does not absorb any process costs.Statement (iii) is correct. These common or joint costs are allocated or apportioned to the joint products.
Statement (i) is incorrect because the value of the product described could be relatively high even though the output volume is relatively low. This product would then be classified as a joint product.Statement (ii) is incorrect. Since a by-product is not important as a saleable item, it is not separately costed and does not absorb any process costs.Statement (iii) is correct. These common or joint costs are allocated or apportioned to the joint products.