Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster 16 - 7 Learning Objective 3 Explain why joint costs should be allocated to individual products. ©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster 16 - 8 Why Allocate Joint Costs? • to compute inventory cost and cost of goods sold • to determine cost reimbursement under contracts • for insurance settlement computations • for rate regulation • for litigation purposes ©2003 Prentice Hall Business Publishing…
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