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: | Barton M. Frank, Spiceland J. David |
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.