Which of the following statements is true of joint costing?
A) The costs of a production process that yields multiple products simultaneously are called joint costs.
B) Distribution costs incurred beyond the split-off point that are assignable to each of the specific products identified at the split-off point are considered as joint costs.
C) The primary purpose of joint costing is to allocate the separable costs to the individual products that are eventually sold.
D) Joint costing is less useful for companies which manufacture multiple products simultaneously from the same production process.

Question

Quizplus · Accepted Answer

Joint costing refers to the costs of a production process that yields multiple products simultaneously. These costs are called joint costs. The joint costs cannot be traced directly to a specific product or department.

Which of the Following Statements Is True of Joint Costing