Which of the following would explain why a company might need to follow very stringent rules that specify the way in which joint costs are assigned to products?
A) to satisfy a federal contract reimbursement stipulations
B) So that cost of goods sold is accurate for income tax purposes
C) to satisfy FASB
D) to increase market share

Question

Quizplus · Accepted Answer

Following stringent rules for assigning joint costs to products may be necessary to satisfy federal contract reimbursement stipulations, which could be a requirement of the contract terms. The other options provided do not necessarily require such stringent rules for assigning joint costs.

Which of the Following Would Explain Why a Company Might