Which of the following is the most important reason to allocate joint costs?
A) Accurate product costs are necessary to make product mix decisions
B) Accurate product costs are necessary to make product pricing decisions
C) Production costs must be allocated to inventory and cost of goods sold for financial statement and tax reporting reasons
D) None of the above - joint cost allocation is arbitrary

Question

Quizplus · Accepted Answer

Joint costs must be allocated to inventory and cost of goods sold for financial statement and tax reporting purposes, as required by accounting standards.

Which of the Following Is the Most Important Reason to Allocate