CA Inter P4 · Chapter 10 · Question 8 of 8
Under the survey (point value) method of apportioning joint costs, the basis of apportionment is:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Weights assigned to each product after a technical survey of factors such as volume, selling price and technical effort
Explanation
The survey or point value method assigns percentage weights (points) to each joint product on the basis of a technical survey of all relevant factors, such as quantity, selling price and processing effort, and apportions joint cost in the ratio of these points.
More Joint Products and By-Products MCQs
- 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…
- Q4A by-product is sold for ₹1,20,000. Selling expenses are 10% of sales, the expected profit margin is 20% of sales and post-separation…
- Q5The main distinction between joint products and by-products is based on:
- Q6The split-off point is the point in a joint production process at which: