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Joint Costs(Quick Test #1)

Harold Averkamp, CPA, MBA

After you have answered all 20 questions, click "Grade This Quick Test" at the bottom of the page to view your grade and receive feedback on your answers.

Note: Some of the following test questions may not have been covered in the Explanation or Practice Quiz for this topic. For more insight regarding a specific question, use the search box at the top of the page.

    1. 1. The point at which two or more products emerge from a common process is the __________ – __________ point.

    2. 2. The costs of a process from which two or more products emerge are referred to as common or __________ costs.

    3. 3. A frequent decision at the point where two or more products emerge from a common process is whether to 1) sell the products at that point, or 2) to __________ them further.

    4. 4. The main products that emerge from a common process and have significant sales value are known as __________ products.

    5. 5. A product that emerges from a common process but its total sales value is insignificant is known as a __________ – __________.

    6. 6. Net __________ value is the estimated sales value in the ordinary course of business minus the costs to complete, dispose, and transport.

    7. 7. The benefit foregone by choosing another course of action is known as the __________ cost.

    8. 8. A separable cost occurs __________ the split-off point.

    9. 9. The allocation of joint costs at the split-off point is based on the net realizable of the units __________.

    10. 10. The joint costs that have been allocated to products are usually__________ in the decision of whether or not to further process a joint product.

    11. 11. Past costs that are irrelevant for a decision are referred to as __________ costs.

    12. 12. Opportunity costs are usually found in a company’s general ledger.

    13. 13. The decision of whether or not to further process a joint product should be based on which of the following?

    14. 14. If a joint product is further processed because it is not saleable at the split-off point, which of the following would be more logical for allocating the joint costs?

    15. 15. One method for accounting for a by-product is to assign it with its net realizable value at the split-off point and then to __________ __________ __________ __________ the common costs that will be allocated to the joint products.

    16. 16. Generally it is better to allocate joint costs on the basis of the __________ __________ __________ of the joint products.

    17. 17. The allocation of joint costs is required for __________.

    18. Use the following information for answering Questions 18 - 20:
      A, B, and C are three main products that emerge from a common process. The total costs of the common process for a recent accounting period were $500,000 and are allocated on the sales value at the split-off point. The following information is also available:

    19. 18. The total amount of joint costs allocated to Product B is $__________.

    20. 19. The allocated costs will be $ __________ per unit of Product C.

    21. 20. Assume that a by-product emerges at the split-off point along with the Products A, B, and C. If the by-product is assigned its net realizable value of $10,000, the total joint costs allocated to Product A will be $__________.

Any questions left unanswered will be marked incorrect.

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About the Author

Harold Averkamp

For the past 52 years, Harold Averkamp (CPA, MBA) has worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on

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