1. BY-product is differentiated from the main products based on

a quantity

b replacement value

c Selling cost

d Sales value

2. Statement I: A cost that is useful for one decision may not be useful information for another decision. Statement II: Cost accounting information is very useful in determining product and in setting prices for the product and the service.

a True, True

b True, False

c False, False

d False, True

3. The standard quantity allowed for the units produced was 4,500 pounds, the standard price was P2.50 per pound, and the materials quantity variance was P375 favorable. Each unit uses 1 pound of materials. How many units were actually produced?

a 4,350

b 4,500

c 11,625

d 4,650