4. In making decisions about whether to sell at split-off or process joint products further, the allocation of joint manufacturing costs is treated as a(n):

a. Essential cost b. Weighted average cost c. Sunk cost d. Period cost

5. The objectives of cost allocation are to:

a. Motivate effort, provide incentives, and fairly determine rewards. b. Accurately define, divide, and allocate direct costs. c. Value, measure, and interpret cost data. d. Connect, communicate, and discern information.

6. Cost allocation provides a service firm a basis for evaluating the:

a. Cost and profitability of its services. b. Value of its services. c. Manufacturing costs for the company. d. The exact cost of each department.