For financial reporting, joint costs are assigned to the product with the highest sales value.

O True O False

Question

Business

Belinda Hendricks

18 October, 01:45

For financial reporting, joint costs are assigned to the product with the highest sales value.

O True O False

+1

Answers (1)

Know the Answer?

Nathan · Answer 1

False

Explanation:

Joint costs are the costs incurred in producing the two or more products at the same time. This requires direct products, direct labor and overhead cost of production.

Only one input is needed in this cost which gives multiple outputs.

The joint allocation of costs based on two or more common products manufactured by the company

Hence, the given statement is false.

For financial reporting, joint costs are assigned to the product with the highest sales value.O True O False

For financial reporting, joint costs are assigned to the product with the highest sales value.

O True O False