Which of the following is TRUE regarding the costs of toxic waste disposal, reclamation, and remediation that result from joint production processing? Select one: a. Toxic waste costs are a life-cycle cost that should be added to joint production costs prior to allocation. b. Disposal costs should be expensed, other costs charged to cost of goods sold. c. Toxic waste costs are treated in the same manner byproduct costs. d. All toxic waste costs should be expensed as do not form part of the product. e. The costs should be valued in inventory at net realizable value.

If the factory operations and selling and administrative offices are housed in the same building, what would be a good cost allocation basis to use in dividing the depreciation expense between the two areas? Why would it be important to make this allocation?

The cost of inventories shall comprise all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Which of the following cost shall be included in the cost of inventories?     a. Administrative overheads that do not contribute to bringing inventories to their present location and condition. b. Abnormal amounts of wasted materials, labor or other production costs. c. Storage costs unnecessary in its production process. d. Import duties and other taxes, transport, handling and other costs directly attributable to the acquisition of finished goods, materials and services.

Which of the following expenditures cannot be included in R&D costs? a. indirect costsb. intangibles purchased from othersc. personnel costsd. contract services performed for others

Kindly answer questions 1-3: 1.) Discretionary costs are costs that must be incurred because of past decision, contractual agreement, and government regulations. a. true b. false 2.) Product costs: a. are always expensed in the same period in which they are incurred. b. are inventoriable costs. c. vary directly with changes in cost driver. d. are always charged to an asset account in the same period in which they are incurred. 3. Controllable costs are cost items which can be regulated depending on the level of management one is in. a. True b. False b. False

When determining the cost of a manufactured good under an operation-costing system, a company would: A.trace direct-material cost and actual conversion cost to each product produced. B. trace direct-material cost to each product produced and use a predetermined application rate for conversion cost. C. trace actual conversion cost to each product produced and use a predetermined application rate for direct material. D. use a predetermined application rate for both direct-material cost and conversion cost. E. often switch to a job-costing system to simplify recordkeeping procedures.

Which of the following statements is true about byproduct costing?    Byproduct costs are allocated to the period in which they are produced    Byproduct costs are expensed in the period incurred    Byproduct costs are treated as a reduction of the main product's cost    Byproduct costs are allocated to the main product

Research and development activities may include (a) personnel costs, (b) materials and equipment costs, and (c) indirect costs. What is the recommended accounting treatment for these three types of R&D costs?

1. If a company obtains two salable products from the refining of one ore, the refining process should be accounted for as a(n) Select one: a. joint process. b. reduction process. c. extractive process. d. mixed cost process.   2. If two or more products share a common process before they are separated, the joint costs should be assigned in a manner that Select one: a. assigns a proportionate amount of the total cost to each product on a quantitative basis.  b. minimizes variations in unit production costs. c. maximizes total earnings. d. does not introduce an element of estimation into the process of accumulating costs for each product.   3. Scrap is defined as a Select one: a. finished unit of product that has no sales value. b. residual of the production process that can be reworked for sale as an irregular unit of product. c. residual of the production process that has no sales value. d. residual of the production process that has limited sales value.

Describe cost depletion and percentage depletion. Whyis the percentage depletion method permitted?