Question 1
What are the reasons for allocating joint costs to individual products or services?
Question 2
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?
◦ to satisfy a federal contract reimbursement stipulations
◦ So that cost of goods sold is accurate for income tax purposes
◦ to satisfy FASB
◦ to increase market share