Question

Which of the following statements is true in regard to the cause-and-effect relationship between allocated joint costs and individual products?
A) A high individual product value results in a high level of joint costs.
B) A low individual product value results in a low level of joint costs.
C) A high individual product value results in a low level of joint costs.
D) There is no cause-and-effect relationship.

Answer 1

Answer:

C) A high individual product value results in a high level of joint costs.

Explanation:

Joint expense is a cost that advantages more than one item, while a side-effect is an item that is a minor aftereffect of a generation procedure and which has small deals. Joint costing or side-effect costing is utilized when a business has a creation procedure from which the last items are separated from during a later phase of generation. There may even be a few separated from focuses; at everyone, another thing can be unmistakably recognized.