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Problem 1: Joint costs occur after the split-off point in a production process.
True
False
Problem 2: The point at which individual products are first identifiable in a joint process is referred to as the split-off point.
Problem 3: The relative sales value method requires a common physical unit for measuring the output of each product.
Problem 4: Joint costs may be allocated to main products, but not to by-products.
Problem 5: Joint costs are allocated to joint products to:
a. obtain a cost per unit for financial statement purposes.
b. provide accurate management information on production costs of each type of product.
c. compute variances from expected costs for each joint product.
d. allow the use of high-low analysis by the company.
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