Please enable JavaScript.
Coggle requires JavaScript to display documents.
Week 2 Tutorial - Coggle Diagram
Week 2 Tutorial
BY-PRODUCTS
MINOR SALES VALUE
in comparison to
JOINT PRODUCTS
COSTING METHODS
TIME OF PRODUCTION
PREFERABLE
MATCHING
ASSET RECOGNITON
MATERIALITY
As other Income
NRV Reducing the cost of joint products at time of production
TIME OF SALE
As other Income
REDUCTION in cost of joint products at time of sale
DECISION-MAKING
Determine what is the decison
2 What is
RELEVANT
to the decision?
FUTURE RELATED
DIFFERS AMONG ALTERNATIVES
IRRELEVANT, SUNK/HISTORIC COSTS
JOINT
RELATIVELY SUBSTANTIAL SALES VALUE
LIMITATION: CHOOSE SUITABLE COSTING METHODS
PHYSICAL
Difficult when
OUTPUT IN DIFFERENT FORMS
EASIEST to
USE
,
UNDERSTAND
SALES VALUE @ SOP
PREFERABLE, MATCHES
cost to revenue
May not have S
ALEABLE VALUE AT SOP
NET REALISABLE VALUE NRV
ADDITIONAL PROCESSING
SEPERABLE
APPROXIMATE FOR SALES VALUE @ SOP
CONSTANT GROSS MARGIN %