Joint cost allocation is useful for
A)decision making.
B)product costing.
C)control.
D)evaluating managers' performance.

Question

Quizplus · Accepted Answer

Joint cost allocation is primarily used for allocating the costs of producing multiple products from a common production process. This is important for determining the cost of each individual product and for making informed decisions about pricing, product mix, and profitability. Therefore, it is most useful for product costing purposes. While it can inform control and performance evaluation, those are not the primary purposes of joint cost allocation.

Joint Cost Allocation Is Useful for