Because the process of allocating joint costs is arbitrary the chosen method should avoid giving the incorrect impression that one or more products is unprofitable.

Question

Quizplus · Accepted Answer

The allocation of joint costs can be arbitrary and does not necessarily reflect the economic value or profitability of individual products. Therefore, the chosen method should be carefully considered to avoid misleading conclusions about product profitability.

Because the Process of Allocating Joint Costs Is Arbitrary the Chosen