While the results of allocating joint-process costs in different ways can be very important to managers for planning,performance evaluation,and decision making,
A)there is no precise way of tracing joint-process costs to joint products.
B)activity-based costing provides a precise way of tracing joint-process costs to joint products.
C)traditional costing provides a precise way of tracing joint-process costs to joint products.
D)standard costing provides a precise way of tracing joint-process costs to joint products.

Question

Quizplus · Accepted Answer

Joint-process costs are inherently difficult to trace directly to individual joint products because these costs are incurred up to the split-off point where the joint products are identifiable. Activity-based, traditional, and standard costing methods do not provide a precise way to allocate these costs directly to the products.

While the Results of Allocating Joint-Process Costs in Different Ways