Why are joint-process costs are allocated?
A)Due to the need to assign joint-process costs to two or more products manufactured from a common input.
B)Due to the need to assign joint-process costs to two or more products manufactured from different inputs.
C)Due to the need to assign joint-process costs to two or more products manufactured from a common output.
D)Due to the need to assign joint-process costs to two or more products manufactured from different outputs.

Question

Quizplus · Accepted Answer

Joint-process costs are allocated because they are incurred in a process that produces two or more products from a common input, making it necessary to distribute these costs among the products for accounting and decision-making purposes.

Why Are Joint-Process Costs Are Allocated