High volumes of production are also associated with high levels of generality in employee tasks and as workers become increasingly generalized in accomplishing a variety of tasks; they can become more effective at these tasks, thereby reducing the

Joint production decisions Grassy Fertilizer manufactures two lines of garden grade fertilizer as part of a joint production process: GF10 and GF20

Joint costs up to the split-off point total $85,000 per batch. These joint costs are allocated to GF10 and GF20 in proportion to their relative sales values at the split-off point of $40,000 and $60,000, respectively. Both lines of garden grade fertilizer can be further processed into commercial grade fertilizer. The following table summarizes the costs and revenue associated with additional processing of GF10 and GF20: (a) The $85,000 in joint costs should be allocated to each product as follows: GF10 $____________, GF20 $____________ (b) Which product (GF10 or GF20) would result in a net decrease in operating income if processed into a commercial grade fertilizer? ____________ (c) Which product (GF10 or GF20) would result in a net increase in operating income if processed into a commercial grade fertilizer? ____________ What will be an ideal response?

Elimination procedures for intercompany bonds purchased from outside parties by another member of the consolidated group are: a. not needed except in the period of acquisition if purchased at par

b. not needed except in the period of acquisition if purchased at a premium or discount. c. not needed except in the period of acquisition if only a portion of the outstanding bonds are purchased. d. needed each period as long as the intercompany investment in bonds exists.