If Two or More Products Share a Common Process Before

question 37

Multiple Choice

If two or more products share a common process before they are separated, the joint costs should be allocated in a manner that:

• A)Assigns a proportionate amount of the total cost to each product by means of a quantitative basis.
• B)Maximizes total earnings.
• C)Minimizes variations in a unit of production cost.
• D)Does not introduce an element of estimation into the process of accumulating costs for each product.