Assume that your company operates a joint-production process that generates three main products and one by-product. If you allocate joint costs only for financial reporting, would you ever care whether you use the NRV or the physical-measures method? Explain.© BrainMass Inc. brainmass.com June 4, 2020, 2:55 am ad1c9bdddf
Well, you would only care if you didn't sell everything you made and you didn't use product cost for other purposes. These two methods will assign costs ...
Allocating costs is more than a financial reporting exercise. Posting explains why.