For financial reporting,joint costs are assigned to the product with the highest sales value.

Question

Quizplus · Accepted Answer

Joint costs are not assigned to a single product based on its sales value in financial reporting. Instead, joint costs are allocated to all joint products that were produced together, based on a reasonable method of allocation. This is because joint products are typically produced together and share common costs, so it is not appropriate to allocate costs to only one product based on its sales value.

For Financial Reporting,joint Costs Are Assigned to the Product with the Highest