Managers should choose a joint cost allocation method to:
A) Justify dropping an unprofitable product
B) Minimize the total joint cost allocated to all products
C) Maximize the organization's overall profitability
D) Avoid giving the mistaken impression that one or more products are sold at a loss

Question

Quizplus · Accepted Answer

Managers should choose a joint cost allocation method to avoid giving the mistaken impression that one or more products are sold at a loss, as this can lead to poor decision-making regarding product lines.

Managers Should Choose a Joint Cost Allocation Method To