The joint cost allocation method affects the:
A) Apparent profitability of different products
B) Total profit of an organization
C) Revenue generated by an individual product
D) Total revenue of an organization

Question

Quizplus · Accepted Answer

The joint cost allocation method affects the apparent profitability of different products as it distributes the joint costs of producing multiple products based on a predetermined allocation method, which can result in different product costs and profitability. This can impact decision-making regarding product mix and pricing. However, it does not directly affect total profit, revenue generated by an individual product, or total revenue of an organization.

The Joint Cost Allocation Method Affects The