Joint product decisions, Managerial Accounting

JOINT PRODUCT DECISIONS

When a manufacturing Company carries out a process operation in which 2 or more joint products are made from a common process a number of decision troubles can occur. These are:

(1) If the joint product can be sold at existing condition at the split-off point or after further separate processing, then a decision should be made on whether to process further.

(2) If extra demand for a joint product exists and not others then it is necessary to know whether it is worth making more output of the joint product so as to make a profit on one and dispose off the other.

(3) If it is possible to change the input so as to change the product mix, then product mix decisions should be made.

Joint Product further processing decisions:

In these decisions the relevant costs are the additional costs of further processing, which should be compared with the incremental revenue of further dealing out. The joint costs acquired before the split-off points are irreverent.

Posted Date: 12/5/2012 7:50:19 AM | Location : United States







Related Discussions:- Joint product decisions, Assignment Help, Ask Question on Joint product decisions, Get Answer, Expert's Help, Joint product decisions Discussions

Write discussion on Joint product decisions
Your posts are moderated
Related Questions
Viti Ltd, located in southern Viti Levu, manufactures a variety of industrial valves and pipe fittings that are sold to customers in the eastern states. Currently, the company is o

What are Selling and distribution expenses? Selling and distribution expenses incurred for the marketing of a commodity, for securing orders for the articles, dispatching goods

A managerial accounting strategy focusing mainly on maintaining efficient levels of both components of working capital that is current assets and current liabilities, with respect


Use of Computer Systems in Linear Programming When a computer is to be used for linear programming there are a number of steps: (1) Development of the equations which descri

It refers to the length of time given to the buyer to pay for their purchases. Throughout this period no interest is charged on the excellent amount. The credit period usually vari

Bulk Agency Factoring : In this category factoring is essentially used as a method of financing book debts. In this sort of factoring the client continues to administer credit a

1. Paid $350,000 to purchase furniture and leased it to DEF Corp. for 5 years. DEF agreed to pay $89,955 on July 1 for each of the next 5 years.  At the end of the lease term we ex

Explain Short term budgets Short term budgets: these budgets are generally for one or two years and are in the form of monetary terms. The consumer's good industries like su

Explain standard costing according to backer and Jacobsen According to backer and Jacobsen, standard cost is the amount the firm to measure the variation from standard costs th