Managerial Accounting Ch. 12

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T or F: allocating joint costs to products at the split-off point is misleading for decision making about the products.

TRUE!!!!

one advantage to using external suppliers instead of (blank) integration is that suppliers can pool demand from a number of companies and enjoy economies of scale, which can result in higher quality and lower costs than a company could obtain if it made the parts on its own.

vertical

less dependence on suppliers is an advantage of:

vertical integration

being less dependent on suppliers and making profits on both parts and the final product are advantages of what?

vertical intergrations

when a product is part the split-off point, but is not yet a finished product, it is called a what?

intermediate product

sunk costs

a cost that has already been incurred and cannot be avoided regardless of what a manager decides to do


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