Accounting 2 Chapter 10

The point in the manufacturing process at which the joint products can be recognized as seperate products.

Split-Off Point

Relevant Benefits

Benefits that differ between alternatives

A machine or process that is limiting overall output is called the what?

Bottleneck

Two or more products that are produced from a common input are known as what?

Joint Products

When a limited resource of some type restricts the company's ability to satisfy demand, the company has a what?

Constraint

Relevant Costs

Costs that differ between alternatives

When a manager increases the capacity of the bottleneck, it is called what?

Relaxing (or elevating) the constraint

Joint Cost

Used to describe the costs incurred up to the split-off point

Vertically Integrated

When a company is involved in more than one activity in the entire value chain

Make or Buy Decision

A decision to carry out one of the activities in the value chain internally, rather than to buy externally from a supplier