Joint product decisions, Managerial Accounting

Assignment Help:

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.


Related Discussions:- Joint product decisions

Types of costs, Types of Costs In short run, costs can be of three gene...

Types of Costs In short run, costs can be of three general kinds: Fixed Cost: Total fixed costs stay constant as volume differs in the relevant range of production. Fixe

Credit standards, This variable deals along with the granting of credit. On...

This variable deals along with the granting of credit. On one great all the customers are granted credit and conversely, none of them are granted credit irrespective of their credi

Make and buy, The Rohr Company’s old equipment for making subassemblies is ...

The Rohr Company’s old equipment for making subassemblies is worn out. The company is considering two courses of action: (a) Completely replacing the old equipment with new equipme

Calculate the total revenue obtainable when the market clear, Question: ...

Question: (a) (I) The following equations relate to the market conditions for pullovers at a given point of time: Demand Function: Q d = 1200 - P Supply Function: Q s

FIFO, I WANT TO KNOW THE RULES FOR DOING LIFO AND FIFO

I WANT TO KNOW THE RULES FOR DOING LIFO AND FIFO

Explain the organization and control system of a car company, Explain the O...

Explain the Organization and Control System of a Car Company? A car company along with its three product lines. Line A is planned at the luxury segment, Line B at the upscale s

State the working capital turnover ratio, State the Working capital turnove...

State the Working capital turnover ratio  Meaning: this ratio establishes a relation ship among net sales and working capital. Working capital turnover ratio shows the vel

Determine the internal factors of pricing decision, Determine the Internal ...

Determine the Internal factors of pricing decision 1) Organization factor: pricing decision occur on two level in the organization. Overall price strategy is dealt with by to

Determine important factors while praparing sales budget, Determine importa...

Determine important factors while praparing sales budget The possible factors to be taken into account while preparing a sales budget are discussed as follows: 1) Past sales

Markov chains, Markov Chains: Markov Chains are named after the Russia...

Markov Chains: Markov Chains are named after the Russian statistician A.A Markov who developed probabilistic models that are often applicable to decision making problems in bu

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd