JOINT PRODUCT AND BY PRODUCT COSTING cs cost mcq formula
JOINT PRODUCT AND BY PRODUCT COSTING cs cost mcq formula Methods of apportioning joint cost over joint products : 1) Physical unit method = Physical base to measure (i.e.) output quantity is used to separate joint cost. Joint cost can be separated on the basis of ratio of output quantity. While doing this wastage is also to be added back to find total quantity. 2) Average unit cost method = In this method joint cost is divided by total units Produced of all products and average cost per unit is arrived and is multiplied With number of units produced in each product. 3) Survey method or point value method = Product units are multiplied by points or weights and the point is divide on that basis. 4) Standard cost method = Joint costs are separated on the basis of standard cost set for respective joint products. 5) Contribution margin method = Cost are divided into two categories (i.e.) variable and fixed. Variable costs are separated on unit produced. Fixed on the basis of contribution ratios made by different products. 6) Market value method:- a) Market value at the point of separation: Joint cost to sales revenue? percentage is found which is called as multiplying factor = Joint cost * 100 Sales Revenue • Joint cost for each product is apportioned by applying this % on sales revenue of each product. • Sales revenue = Sales Revenue at the point of separation. • This method cannot be done till the sales revenue at the separation point is given. b) Market value after processing: Joint cost
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