Question

Which among the following is not affected by further processing a product? Select one: a. Price per unit b. Cots per unit Incorrect c. Sales in units d. Amount of sales e. Variable cost

Answer 1

C) Sales in Units

The total sales values of the products which are smaller as comparison to the sales value of the joint products are classified as by-products. By –products are created by further processing a product. Price per unit doesn’t remain same with the further processing of a product. Therefore it is affected by further processing a product. Cost per unit and variable cost doesn’t remain same with the further processing of a product. It is added in the further processing cost to determine the total cost of the product .Therefore it is affected by further processing a product.

Sales in units are not affected by further processing a product. It only affects the price and cost.