Joint costs are useful for
A)setting the selling price of a product.
B)determining whether to continue producing an item.
C)evaluating management by means of a responsibility reporting system.
D)determining inventory cost for accounting purposes.

Question

Quizplus · Accepted Answer

Joint costs are costs incurred in the production of two or more products simultaneously. These costs cannot be attributed to a single product, so they are allocated between the products based on their relative sales values. This allocation is used for inventory cost accounting purposes.

Joint Costs Are Useful for