Joint costs are useful for A. Setting the selling price of a product. B. Determining inventory cost for accounting purposes. C. Evaluating management by means of a responsibility reporting system. D. Determining whether to continue producing an item.

Question

Social Studies

Delilah Hamilton

27 May, 05:27

Joint costs are useful for A. Setting the selling price of a product. B. Determining inventory cost for accounting purposes. C. Evaluating management by means of a responsibility reporting system. D. Determining whether to continue producing an item.

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Answers (1)

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Brendon Conway · Answer 1

B. Determining inventory cost for accounting purposes

Explanation:

Joint cost is the manufacturing cost incurred on a joint production process which takes common inputs but at the same time produces multiple products called joint-products e. g. processing of crude oil simultaneously yields gasoline, diesel, jet fuel, lubricants and other products.