Joint costs are allocated to joint products to
A)obtain a cost per unit for financial statement purposes.
B)provide accurate management information on production costs of each type of product.
C)compute variances from expected costs for each joint product.
D)allow the use of high-low analysis by the company.

Question

Quizplus · Accepted Answer

Joint costs are allocated to joint products in order to obtain a cost per unit for financial statement purposes. This allows the company to accurately report the costs associated with each joint product and determine the profitability of each product.

Joint Costs Are Allocated to Joint Products to