CA Inter P4 · Chapter 10 · Question 5 of 8
The main distinction between joint products and by-products is based on:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The relative sales value of the products
Explanation
Joint products have relatively significant sales values and are produced simultaneously as main products. By-products have a comparatively small sales value. The classification depends on relative value, not on quantity or further processing.
More Joint Products and By-Products MCQs
- Q7A joint product can be sold at split-off for ₹40 per kg, or processed further and sold at ₹56 per kg. Further processing of the 5,000 kg…
- Q8Under the survey (point value) method of apportioning joint costs, the basis of apportionment is:
- Q1Joint costs of ₹4,80,000 are incurred up to the split-off point, producing 6,000 kg of product P and 10,000 kg of product Q. Using the…
- Q2Using the same output (P 6,000 kg, Q 10,000 kg) and joint cost of ₹4,80,000, P can be sold at the split-off point for ₹50 per kg and Q for…
- Q3Joint costs of ₹3,90,000 produce 6,000 kg of P and 10,000 kg of Q, neither of which is saleable at split-off. After further processing, P…