"What's the Big Fuss About Learning Three Different Methods of Cost

question 81

Essay

"What's the big fuss about learning three different methods of cost allocation for joint products? The total cost doesn't change, and the real question that needs answering is whether to further process joint products or sell right away.Besides, our firm uses JIT inventory, so there aren't any ending inventories to cost."
Required:
Comment on these ideas.

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Definitions:

Closing Process

The procedure performed at the end of an accounting period to prepare accounts for the next period, including summarizing revenue and expense accounts and assessing net income or loss.