Compare the advantages and disadvantages of the two primary methods used to allocate joint costs to joint products
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Compare the advantages and disadvantages of the two primary methods used to allocate joint costs to joint products
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Discussion Question: Unit 7: Allocation of Joint Cost and Accounting for By-Products Discussion View the video: Navistar http://www.cengage.com/accounting/discipline_content/eav_hw/video.html?asset=relevant costs_experience_accounting_videos_title_14_01 The Navistar video demonstrates the company’s diligent research of all data in its consideration concerning a make or buy decision. Please respond to the following Discussion Board topic. Take time to review the responses of your classmates and provide your feedback. Joint Cost Allocation Regarding joint cost allocation, discuss the following: Identify the two primary methods used to allocate joint costs. Compare the advantages and disadvantages of the two primary methods used to allocate joint costs to joint products. Explain how the choice of allocation method may affect the financial statements.
