1C1J THE PRIMARY PURPOSE FOR ALLOCATING COMMON COSTS TO JOINT PRODUCT...

178. CSO: 1C1f LOS: 1C1j

The primary purpose for allocating common costs to joint products is to determine

a. the selling price of a by-product.

b. whether or not one of the joint products should be discontinued.

c. the variance between budgeted and actual common costs.

d. the inventory cost of joint products for financial reporting.