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

Question

Quizplus · Accepted Answer

Allocated joint costs are necessary to determine the inventory cost for accounting purposes. Joint costs are the costs incurred in producing two or more products or services that can't be economically separated. These costs must be allocated among the different products or services produced.

Allocated Joint Costs Are Useful For