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
Archie Ltd manufactures a product called Gizmo. It uses the following direct inputs: Price Quantity Cost per unit of output Direct materials $4 per gram 10 grams per unit $40 per


Marginal cost or incremental cost pricing method: Here the company may work on the premise of recovering its marginal cost and getting a contribution towards its overheads. Thi

Determine the tyoes of Cost centre Cost centre can be of two kinds: 1. Impersonal cost centre: consisting of a location or item of equipment (or group of these) like machi

Participative Budgets In this approach to budgeting, budgets are developed by lower level managers who then submit them to their superiors. The budgets depend on the lower level


Hoe to find the cost of goods transferred under weighted average method

What are the features of performance budgeting The main features of performance budgeting are:  a)  Classification into functions activities or programmers.  b)  Specifyi

Describe the impact of different types of standards on motivations, and specifically, the likely effect on motivation of adopting the labor standard recommended for Geeta & Company

question 3.5A Trial balance sheet,income statement, owner''s equity and balance sheet