Asked by Kenneth Blake on Jun 03, 2024
Verified
Managers will often find it necessary to use a subjective determination regarding the most appropriate method to use for allocating joint costs.
Joint Costs
Costs incurred when producing multiple products in the same process, where the costs cannot be separated easily for each product.
- Assess the use and impact of subjective determinations in cost allocation methods.
Verified Answer
SD
Sonam Dua AroraJun 04, 2024
Final Answer :
True
Explanation :
The allocation of joint costs often requires managerial judgment to determine the most appropriate method, as there is not always a clear, objective way to allocate these costs among the products produced.
Learning Objectives
- Assess the use and impact of subjective determinations in cost allocation methods.
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