Which of the following statements about joint-cost allocation is false?
A)Joint-cost allocation is useful in deciding whether to further process a product after split-off.
B)Joint-cost allocation is useful in making a profit determination about individual joint products.
C)Joint-cost allocation is helpful in inventory valuation.
D)Joint-cost allocation can be based on the number of units produceD.
E)Joint-cost allocation can be accomplished by using several different methods that focus on sales value and product "worth."

Question

Quizplus · Accepted Answer

Joint-cost allocation is not useful in deciding whether to further process a product after split-off. It only helps in allocating the joint costs to individual products. The decision of further processing should be made based on incremental costs and benefits after split-off.

Which of the Following Statements About Joint-Cost Allocation Is False