A management purpose for allocating joint costs of a processing center to the various products produced is to:
A) establish inventory values for unsold units.
B) record accurate cost of sales by-product line.
C) compute total processing cost variances by-product.
D) report correct standard product costs for comparative analysis.

Question

Quizplus · Accepted Answer

Joint costs are allocated to establish inventory values for unsold units, which is essential for financial reporting and inventory management.

A Management Purpose for Allocating Joint Costs of a Processing