Joint cost allocation as a principal cost control strategy

Joint cost allocation as a principal cost control strategy

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Article ID: iaor1990824
Country: United States
Volume: 28
Start Page Number: 117
End Page Number: 122
Publication Date: Jul 1987
Journal: Production and Inventory Management Journal
Authors: ,
Abstract:

Some accountants believe that true joint product costs are not separable and any attempt at allocation is at best an arbitrary cost expedient. Assuming that this statement is true, why not use a method of cost allocation that would provide some benefits in pricing, planning, and control decisions? The current sales method presented here allows the assignment of joint costs according to shifts in relative demand within each operating period.

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