1761. When by products are of small total value, its accounting should be by :

A. Distributing a piece of joint expense for by items
B. Solid worth of by items ought to be treated as incidental pay and moved to P and L A/C . *
C. Solid worth of by items ought to be allocated over the principal items
D. Any of these

1762. Net reliable value of by products at the split off point should be calculated by reverse cost method when :

A. By products are of small total value
B. By products are of considerable value
C. By products require further processing for their sale *
D. None of them

1763. Cost per unit is the average cost is applicable in :

A. Job costing
B. Multiple costing
C. Operating costing *
D. Contract costing

1764. Trimmings in timber industry should be treated as a :

A. Waste
B. By Product
C. Scrap *
D. Joint product

1765. The method of accounting for joint product costs that will produce same gross profit rate for all the products is :

A. Sales value method *
B. Physical measure method
C. Average unit cost method
D. All of these

1766. Which of the following methods of accounting of by products should be applied when the by product is to be utilised in the undertaking itself as material for some other process ?

A. Sales value method
B. Opportunity cost method *
C. Other income method
D. Reverse cost method

1767. Credit is given to the process account at a pre-determined value of the byproduct under the :

A. Standard cost method *
B. Reverse cost method
C. Opportunity cost method
D. Sales value method

1768. The primary purpose of apportioning joint costs of a processing centre to various products produced is to :

A. Foster exact handling cost fluctuations item wise
B. Report more correct standard product costs for comparative analysis
C. Establish inventory cost assigned to unsold units
D. Record accurate cost of sales by product lines *

1769. In the sales value method of apportioning joint costs to various products, the basis of apportionment is :

A. Selling prices of each of joint products
B. Selling cost duplicated by units sold of every one of joint items
C. Sales value les subsequent production cost of individual products
D. Any of the above *

1770. A product which has practically no sales or utility value is :

A. Waste *
B. By product scrap
C. Scrap
D. Spoilage