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Cost Allocation: Joint Products and By-products

Cost Allocation: Joint Products and By-products. ACCT7320 Dr. Bailey Tuesday, February 17, 2009. Criteria to Guide Cost-Allocation Decisions. Cause-and-effect: Using this criterion, managers identify the variable or variables that cause resources to be consumed. Benefits-received:

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750 views • 50 slides

Cost Allocation: Joint Products and By-products

Cost Allocation: Joint Products and By-products. ACCT7320 Dr. Bailey. Nature of Cost Allocations. Pervasive in accounting Across time (depreciation) Between departments (e.g., service depts ) To products, customers, branch offices, etc. Often arbitrary May mislead in decision making.

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364 views • 24 slides

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High low sales value - PowerPoint PPT Presentation

Cost Allocation: Joint Products and By-products

Cost Allocation: Joint Products and By-products